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-   -   Inventory write-off method (https://www.askmehelpdesk.com/showthread.php?t=190534)

  • Mar 3, 2008, 09:00 AM
    Cavatina
    Inventory write-off method
    How does a company determine the dollar amount for obsolete inventory?

    It seems that some companies assign a percentage to an inventory category according to its sales trend - e.g. 50% to non-moving inventory and 25% to slowly-moving inventory. Is this the MOST COMMON method?

    How about write off everything that is over 2 years old?
  • Jul 12, 2009, 05:00 AM
    ROLCAM

    The most common method is to put the
    Obsolete stock in the dust bin or
    Better still ship it to the tip.
    You can determine exactly and literally what you write off.

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