IC adjustment for slow moving / old inventory

[aurunner611]

sage 300 advanced 2017

Previous owner of business used IC - Adjustments to decrease cost on slow moving and old inventory to get it off the books. Then they left those items in inventory and sold them slowly piece by piece. Doing it this way would show 100% profit when selling.(or nearly 100%, most items were cost down to .10)
Is that the correct way to deal with slow moving / old inventory?

We have another large group of products that need to be "written off" and want to make sure we are doing it the correct way.
1) Some items are likely to get liquidated right away. Should we just reduce the selling price on these items in Order Entry?
2) Some items are likely to stay in inventory for a year or until the fabric used in construction is exhausted (fabric is no longer available).

thanks for your insight!

 

[ettienne]

Those are questions that your accountant should answer. Obsolete inventory can be taken as a tax deduction if they can no longer be sold at a normal price.
The only way to reduce the inventory value (cost) of items is by doing an inventory adjustment. You can override the selling price in OE, or create a new price list for those items, or set a sale price for those items, or use a discount a discount level (A through E)... many ways to skin a cat.

Sage 300 Certified Consultant