inventory loss

When Should Inventory Be Written Down?

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When Should Inventory Be Written Down? Inventory is written down when goods are lost or stolen, or their value has declined. This should be done at once, so that the financial statements immediately reflect the reduced value of the inventory. When can inventory be written off? Writing off inventory involves removing the cost of no-value

What Causes Obsolete Inventory?

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What Causes Obsolete Inventory? Inventory obsolescence is often caused by businesses failing to understand the product life cycles of the items they stock and consequently missing the warning signs of those nearing their end. What is obsolete material? Obsolete Materials means: any material which the Seller has purchased or issued a purchase order to the