(Solved) Write Off Loss of Crop
travis88
Member Posts: 18
This differs from a bad invoice, however, I have harvested a crop that can be sold, but then it is lost as a casualty of weather.
What is the best way to transact this loss? Should I create an invoice or income entry for what would have been realized, and then offset by withdrawing to a new expense account such as (Crop Casualty Loss)?
My exact situation is that I have produced 400 items, 200 sold in a legitimate invoice, and the remaining 200 were lost to weather -- I need this accounted for.
What is the best way to transact this loss? Should I create an invoice or income entry for what would have been realized, and then offset by withdrawing to a new expense account such as (Crop Casualty Loss)?
My exact situation is that I have produced 400 items, 200 sold in a legitimate invoice, and the remaining 200 were lost to weather -- I need this accounted for.
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I created an invoice on the date of the loss for that buyer and added a payment to the new Undeposited account. I then added an expense to offset that income into the Crop Casualty account.
This follows the guidelines at https://support.waveapps.com/hc/en-us/articles/115000031243-How-to-write-off-an-invoice
I am not sure if it worked as intended to reduce actual profit, but it seems like it will make sense.
Hey @travis88 . These are the exact steps you'd want to follow, kudos to you on figuring this out on your own!