Rustler’s Quickbooks Tips

Occasionally inventory is obsolete, spoiled or damaged somehow and you need to get rid of it.

One way is to set up an account called something like “spoilage/obsolete” as a sub account of COGS. Then use inventory adjust, select the account “spoilage/obsolete” as the adjusting account and then lower the quantity on hand of the item that are no good anymore.

This assumes of course that you really do throw the items away.