Write-Off Inventory

1. Navigate to Setup > Accounting > Chart of Accounts > Create a GL account of type Expense to post the value of obsolete inventory on the income statement.
2. Navigate to Transactions > Inventory > Adjust Inventory. 
3. Set all necessary fields and on the Adjustment Account field, select the Account created in step 1. to write off inventory created above. 
4. Navigate to the Adjustments tab.
5. On the Item column field, select item. 
6. Enter a negative quantity in the Adjust Qty by column field(quantity to write off). The system would assign the Est. Unit Cost based on the costing method of the item. 
7. After setting all other necessary fields if any, click Add. 
8. Click Save

As a result of the Inventory adjustment, the quantity being written off is deducted from stock and the expense amount posts to the general ledger using the adjustment account you selected.