Hi Yashwant
Thank you for your prompt input regarding the handling of inventory items
such as workwear and tools as expenses. However, I would like to clarify
why writing off these items upon Purchase Order (PO) approval does not fit
in my case.
1. *PO Approval is a Separate Process*
- The approval of a PO is a managerial decision to authorize a
purchase; it does not affect the accounting treatment of the purchased
items.
- Approving a PO should not immediately impact the expense account,
as the actual use of the item occurs later.
2. *Workwear and Tools Should Follow Standard Inventory Handling*
- Expensive tools and workwear should be received into *inventory*
and written off only when they are actually issued for use.
- This ensures proper tracking, cost allocation, and prevents
unnecessary expense recognition before actual usage.
The process should function like raw materials in production:
- Items are received into inventory.
- They are written off at expense when used.
Do you know any workaround that can be used in my case? Can I extend
physical adjustment for this for example?
Best regards
Alexander
чт, 27 февр. 2025 г. в 16:06, Yashwant Dhakad <
[email protected]>:
> Hi Alexander,
>
> In OFBiz, for cases where inventory items such as workwear, tools
> consumption, and similar scenarios need to be written off as an expense
> without impacting inventory levels, you can use the Service Product.
>
> - In OFBiz, Service Products (non-inventory items) can be used to
> represent expenses.
> - When you create a Purchase Order for such expenses, OFBiz
> automatically completes the order item upon approval without creating
> inventory transactions.
> - This allows you to generate a cost entry directly in the General
> Ledger (GL) without affecting stock levels.
>
>
>
> On Thu, Feb 27, 2025 at 5:31 PM Alexander Bolgarin <
> [email protected]> wrote:
>
> > Hi All,
> >
> > I need help understanding how to write off an inventory item as an
> expense
> > in OFBiz.
> >
> > There are several cases where inventory items should be written off as
> > expenses. For example:
> >
> > - Workwear
> > - Tools consumption
> > - Other similar scenarios
> >
> > Could you please guide me on the correct process to handle such
> write-offs
> > in OFBiz? I am aware of Physical inventory adjustment. But it is another
> > process and I do not want to use it for writing off.
> >
> >
> > Thank you in advance for your help!
> >
> > Alexander
> >
>
>
> --
> Kind Regards,
> Yashwant Dhakad
>
