Markdown of food and write-off of expired goods

Mostly, grocery stores deal with perishable goods. And quite often, in order not to lose profit, supermarkets give a discount on goods that are about to expire or make a markdown on spoiled goods. In which cases you can give a discount on goods, and when you need to write them off, read this article.

Product expiration date

The Law on Consumer Protection clearly defines the shelf life as a period specified by regulations or contractual terms during which the quality and safety characteristics of products must meet the requirements of such regulations or contracts, subject to the rules of storage and operation of products.

The Civil Code of Ukraine proposes to determine the expiration date:
the period of time from the date of manufacture of the goods until the goods are fit for use (for example, 12 months from the date of manufacture);
the date by which the goods are fit for use (for example, fit for use until 12/30/2020).

The expiration date is set for products whose consumer properties may deteriorate and pose a danger to the health and life of the buyer or the environment. Therefore, the Civil Code obliges the seller to sell goods with an expiration date in such a way that after purchasing the goods, the customer can use them until the expiration date. Selling goods after the expiration date is prohibited in Ukraine.

Penalties for the sale of expired goods

The CCU prohibits not only selling expired goods, but also placing them on the shelves.

The sale of expired goods is subject to a fine of 200% of the value of the balance of the consignment received for sale, but not less than UAH 85 (5 tax-free minimum incomes).

Obstruction of the State Consumer Inspection in conducting quality control and compliance with trade rules is punishable by a fine of 1 to 10% of the value of the products sold for the previous month, but not less than UAH 170 (10 NMDC).

A fine of UAH 340 (20 NMDG) is imposed for failure to comply with orders of the State Consumer Inspection to eliminate violations of consumer rights.

What to do with expired goods?

If you find an expired product in your store, you need to withdraw it from circulation and then write it off and dispose of it. If you buy goods "for sale", then the withdrawn goods must be returned to the supplier.
The cost of damaged goods should be written off the balance sheet. Such goods are written off at their actual cost and expensed in the period in which they are identified. Such expenses are included in other operating expenses. If you keep records at selling prices, then you must also write off the amount of the trade margin.

Markdown of food products

If you notice that the goods in your store are nearing the end of their shelf life or have begun to lose their presentation, you have the right to mark down such goods.

The main rule! When selecting the goods to be discounted, you should calculate the timeframe so that after purchasing the goods, the customer can use them until the expiration date.

To document the markdown, you need to draw up a markdown report. After markdown, you should place an announcement in the sales area announcing the sale of such goods and the new prices. The cost of discounted goods cannot be lower than the cost of such goods.

Is it possible to sell spoiled vegetables and fruits under the guise of a markdown?

It is not uncommon for stores to discount vegetables and fruits that have obvious defects and signs of decay. However, few people know that selling such products is prohibited. The seller is obliged to check the quality of the products by external signs before placing them on the counter, reject and organize obviously spoiled products.

It is prohibited to sell rotten, sluggish, spoiled, or damaged fruit and vegetables with broken skin. If you have received a batch of goods, you must select the spoiled products and return them to the supplier, and not sell them at a discount.