How do I account for a unit written off?
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Summary
This article will explain how to account for writing off a vehicle from Unit Sales and altering the values in the accounts.
More Information
As the summary states, there are two things to do in order to write off a vehicle from the system.
Writing Off the Value of the Vehicle
In order to reduce the value of stock, you will need to know the Nominal Centres for your 'Stock Value' and 'Vehicle Write-Off'.
 | If you do not have a 'Vehicle Write-Off' centre, you will need to create one making sure that you set the "P/L indicator" to 'Cost of Sales'. See : How do I Create a Nominal Code? for instructions to do this. |
You will need to do a journal between these centres.
- Go to " Nominal Ledger Journal Entries Double Entry".
- On "1st Centre :", enter the centre for "Vehicle Write-Off".
- On "Date :", enter the date that you wrote off the vehicle.
- On "Amount :", enter the value of the vehicle as it appears on the Unit Sales system as a positive amount, because you will be debiting the "Vehicle Write-Off" code and crediting the "Stock Value".
- On "Cheque No./Comment :" enter the '<Vehicle Stock number> and W/Off'.
- On "2nd Centre :" enter the centre for your "Stock Value".
- Accept the posting.
This posting should have the effect of reducing the value of your stock on the accounts by the cost of the vehicle concerned, and increasing the cost of sales in the month in question by the same amount hence reducing your profit in that period.
