(Solved) Write Off Loss of Crop

travis88travis88 Member Posts: 12
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.
edited December 4, 2019 in Accounting Technical Support

Comments

  • travis88travis88 Member Posts: 12
    Update: I created a new bank account for Undeposited / Lost Funds and an expense account for Crop Casualty to Weather as well as a buyer with the same details.

    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.
  • AlexLAlexL Administrator Posts: 1,118 admin

    Hey @travis88 . These are the exact steps you'd want to follow, kudos to you on figuring this out on your own!

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