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IRKPA

How do I remove donated items from stock?

We are donating items regularly. What "reason" should we use to record them when we take them out of inventory? None seem to apply!

and

What is the difference between "loss" and "theft"?

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Admin

Re: how to remove donated items from stock

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@IRKPA

 

Just taking some definitions from around the web to better define these for you:

 

Loss: a loss is a decrease in net income that is outside the normal operations of the business. Losses can result from a number of activities such as; sale of an asset for less than its carrying amount, the write-down of assets, or a loss from lawsuits.

 

Theft: Just what it sounds likes, stolen goods or funds.

 

Both of these cause shrinkage in your business and tracking this will help you control shrinkage.

 

Since the donation button is not an option at this time, I would suggest using Loss (due to no funds being received for these items) to control your inventory and accurately still show the effects on your inventory.

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Admin

Re: how to remove donated items from stock

Best Answer

@IRKPA

 

Just taking some definitions from around the web to better define these for you:

 

Loss: a loss is a decrease in net income that is outside the normal operations of the business. Losses can result from a number of activities such as; sale of an asset for less than its carrying amount, the write-down of assets, or a loss from lawsuits.

 

Theft: Just what it sounds likes, stolen goods or funds.

 

Both of these cause shrinkage in your business and tracking this will help you control shrinkage.

 

Since the donation button is not an option at this time, I would suggest using Loss (due to no funds being received for these items) to control your inventory and accurately still show the effects on your inventory.

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IRKPA

Re: how to remove donated items from stock

Thanks, that makes sense. It sounds like it would also apply to some of our own publications for which we printed too many copies years ago and may sell only a few copies a year even at reduced price.

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Admin

Re: how to remove donated items from stock

@IRKPA

 

Exactly! Ultimately, this reporting is for you to be able to see the in's and outs of money in the business.  If you have an accountant that prefers you do it a different way, then that would be something to check into as well.

 

I spent years doing my own books, so these kind of calculations were a really great way for me to see where I was losing/growing/where I needed to trim costs. So it can be an incredibly beneficial tool if you know what you are looking to track.

 

 

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IRKPA

Re: how to remove donated items from stock

It would be good for Square to consider adding an "other" option where we could indicate donated goods vs. inventory removed because it isn't selling. We do have to track those differences in QuickBooks Online, but it would be good to check them against records in Square, as we do for sales by location, memberships, etc. to make sure they were entered correctly.

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Admin

Re: how to remove donated items from stock

@IRKPA 

 

We'll definitely pass that along to the team!

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