How Do You Record Inventory Shrinkage?


To record inventory shrinkage, the person will need to record the losses. They will do this by removing them from the inventory account the cost of missing or damaged goods. This is mostly done on a spreadsheet.
Q&A Related to "How Do You Record Inventory Shrinkage?"
1. Check your company's records to determine the value of inventory that you should have in stock based on prior inventory totals and the value of goods sold. This is the book value
1. Prevent employee theft from the point of sale (POS) terminal by using an efficient POS software solution. Review daily transactions through the POS terminal for suspicious behavior
Unexplained difference in inventory between a physical count and the amount recorded. Causes may range from normal evaporation of a liquid to theft.
You should offset it to Cost of Goods sold. It should be done thru Write-off of Goods.
Explore this Topic
Inventory shrinkage is the difference between the amount of inventory that is on file and the actual amount. The numbers might not match due to theft, shipment ...
The term retail shrinkage refers to a reduction in inventory due to shoplifting, employee theft, paperwork errors and supplier fraud. Administrative and paperwork ...
"Inventory shrinkage" refers to the reduction of inventory between manufacture and point of sale. Some of the reasons for inventory shrinkage ...
About -  Privacy -  AskEraser  -  Careers -  Ask Blog -  Mobile -  Help -  Feedback © 2014