Writing off a defect without cash losses: how to properly prepare documents

Writing off defective goods: how to correctly remove defective items from the database (creating a defect report or returning them to the supplier) without running these amounts through the cash register as a loss?

In the Torgsoft program, the processes of goods movement (inventory accounting) and money movement (financial accounting) are separated. This means that processing the write-off or return of defective goods will automatically change the quantity of goods in stock and affect settlements with the supplier or the overall profit calculation, but it will not deduct physical money from your cash register unless you manually create the corresponding outgoing financial document.

Depending on the agreements with the supplier, Torgsoft has three correct ways to process defective goods:

Option 1. Creating a «Defect Return» report (if the supplier accepts defective goods)

This mode is used when you return defective goods to a specific supplier and specify the reason.

How to process it:

1. Go to the main menu item Document -> Defect Return.

2. Click the Add button to create a new defect report.

3. In the "Supplier" field, select the required supplier from the list or directory and click Save.

4. To add goods, click the Select Goods button.

5. A window with the list of deliveries from this supplier will open. In the Defect Quantity column, specify the quantity of damaged goods, and in the Defect Description column, be sure to specify the reason for rejection.

6. Click Select, and the goods will be added to the report.

Option 2. Processing «Return of Goods to Supplier» (standard return)

If you are simply returning goods (for example, slow-moving goods or defective items that the supplier agreed to take back without a detailed report), you can use a standard return.

How to process it:

1. Go to the menu Document -> Return of Goods to Supplier.

2. Click Add, select the supplier and (if necessary) the company, then click Save.

3. Add the goods to the invoice by scanning the barcode or selecting them manually from stock.

Option 3. Processing «Write-off of Goods from Stock» (if the loss falls on you)

If defective goods cannot be returned to the supplier (for example, they were broken due to your fault or they have expired), they must be written off.

How to process it:

1. Go to the menu Document -> Write-off of Goods from Stock.

2. Click New Write-off.

3. In the Write-off field (counterparty), by default select the Write-off item from the list and click Save.

4. Scan the defective goods or select them using the Select Goods from Stock button.

So, to make sure the amount of defective goods does not pass through the cash register as a cash loss, you only need to use one of the three stock documents (Defect Return, Return to Supplier, or Write-off). Do not additionally create a «Financial Document» (an outgoing cash order from the cash register), and your cash balances in the program will remain untouched, while stock balances and profitability analytics will be adjusted automatically.