Dynamics Community Forum Thread Details

Inventory Write-Off - keeping quantity but removing book value.

Hello looking for any other solutions out there.

Context:

I work in a regulated industry which means I cannot just adjust out inventory.
We have a large amount of controlled inventory that has a NRV (net realizable value) of 0
I need to financial write-off to happen now for our book valuation however destruction needs to happen at a later time.

Problem:

I cannot use the standard inventory adjustment to remove the value from my Balance sheet as I need to still show we have the inventory.
We are lot tracked and use a mix of standard and average costing.
I cannot revaluate specific lots for a specific date and average cost is a headache to do for specific lots.

Current solution:

Created write off locations that has inventory posting setup post to my P&L so when I move inventory into that location it credits my Asset account and Debits my Expense account.
I have a gen bus posting group that I use to override at time of inventory removal so that it posts the adjustment to the same expense account at time of inventory remove resulting in a debit/credit of the same value.

Challenge with current solution:

The inventory still shows on my inventory valuation report at its full value. I now have to create an "exclusion list" which has caused some confusion for other financial users.

Question:
Is there another solution or one that is more elegant and truly writes off the value of the inventory that isn't crazy complicated?

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