How Do You Manage Obsolete Inventory
If Your Customers Refuse to Buy Your Obsolete Inventory, No Matter How Much You Market, Discount, and Bundle It, Then You Can Always Sell Your Excess Stock to...
If your customers refuse to buy your obsolete inventory, no matter how much you market, discount, and bundle it, then you can always sell your excess stock to liquidation organizations. These are businesses that will buy your products at the lowest minimum price to help you free up warehouse space and capital.
How do you handle obsolete inventory?
- Return for a refund or credit. …
- Divert the inventory to new products. …
- Trade with industry partners. …
- Sell to customers. …
- Consign your product. …
- Liquidate excess inventory. …
- Auction it yourself. …
- Scrap it.
How companies treat their obsolescence inventory?
To conduct proper accounting of inventory obsolescence, businesses should report unusable stock by debiting an expense account. … After debiting the expense account, the value should be credited to a contra asset account, which is a type of asset account that has a credit balance.
Marcus Vance is a cybersecurity auditor and technology writer dedicated to educating the public about online safety, data privacy regulations, enterprise security, and emerging cyber threats.
