DaisyFairy Posted January 10, 2006 Share Posted January 10, 2006 I need to know if anyone knows how to get rid of inventory items that are just no feasible anymore or that you have just decided not to carry. Like say you carried materials for making lotions as well as candles.. and you decide to drop the lotion line and just stick to candles, but the lotion production materials have already been included in previous years inventories. So are there special forms you have to fill out to show that product was dropped and no longer considered an inventory item? at one time I was going to do lotions and bath salts.. also but now just want to concentrate on candles. Any help Greatly appreciated. DaisyFairy Quote Link to comment Share on other sites More sharing options...
ebcandles Posted January 10, 2006 Share Posted January 10, 2006 Thats a good question. Any accountants out there????:undecided Quote Link to comment Share on other sites More sharing options...
sudsnwicks Posted January 10, 2006 Share Posted January 10, 2006 Are any of the ingredients things you can sell off? If not, I think they would be treated the same way as products which could not be sold because they expired, went out of style, or were damaged, lost, or stolen. That is, they would be removed from your year end inventory. Quote Link to comment Share on other sites More sharing options...
DaisyFairy Posted January 10, 2006 Author Share Posted January 10, 2006 oh, ok.. so do you have to show where they go... like a loss report or something.. and then just remove them from the year end? I am fairly new to this and have never had to do a loss report or anything so not exactly sure what to do.. I have testing paperwork to show the testing costs... but never had to do a loss due to removal of inventory items. Quote Link to comment Share on other sites More sharing options...
sudsnwicks Posted January 10, 2006 Share Posted January 10, 2006 I would do some sort of loss report for my own records. I don't think you need to file it formally, but you should have the backup on hand in case anyone queries. Quote Link to comment Share on other sites More sharing options...
DaisyFairy Posted January 10, 2006 Author Share Posted January 10, 2006 ok.. thank you very much! ugh! I hate getting all this stuff together..much rather be making candles. DaisyFairy Quote Link to comment Share on other sites More sharing options...
Suzanne Posted January 10, 2006 Share Posted January 10, 2006 Daisy it would depend on what you plan on doing with the product you are discontinuing. As long as you still have it, it is still part of your physical inventory. However, you can transfer it to another account depending on how you do books. Quote Link to comment Share on other sites More sharing options...
DaisyFairy Posted January 10, 2006 Author Share Posted January 10, 2006 yeah, I was thinking about that so... I went to the irs site and have been reading.. so I am learning a bit more.. I know you can withdraw items for personal use.. but then you have to credit your purchases for the value of that item. I may just leave it where it is for the sake of ease and then gather up all the inventory I am not going to use and make a list and sell it to people who want to use it later. if anyone is interested this is a pretty good publication on their site.... has eight chapters I think and is pretty informative...http://www.irs.gov/publications/p334/ch01.html#d0e4576DaisyFairy Quote Link to comment Share on other sites More sharing options...
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