*Hi Alexander,Another approach could be to raise a Work Order and dissolve the inventory against expenses when the items are issued for use. I think this might align with your need for proper inventory tracking and cost allocation. It might require some customization based on your business needs, but it should work.*
On Thu, Feb 27, 2025 at 7:37 PM Alexander Bolgarin < [email protected]> wrote: > 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 > > > -- *Kind Regards,* *Rohit Koushal | Engineering manager* *HotWax Systems* <http://www.hotwaxsystems.com/> *Plot no. 80, Scheme no. 78 Part 2, Near Brilliant Convention Center, Indore, M.P 452010* *Mobile: 9098461867*
