There are several options that our customers use depending on their varying requirements…

1. The best way is to create a new contact called “Lost or Damaged Stock” and sell it to that contact for zero*. This will update the stock status to “Sold” and the zero value invoice will not affect monthly invoice totals nor create any margin scheme VAT liability. If it was a purchased item then you may still have a liability to your supplier for the purchase cost. If it was a consignment, then adding it to an invoice will auto create the Purchase Invoice to the consigner. Therefore, for consigned items, you may want to adjust the figures in the Stock > Consignment tab based on whatever you have discussed with the consigner before creating the zero value invoice.

Other options include:

2. For Purchased multiple or Consigned multiple Items ONLY: Edit the Stock quantity. Click the Stock Movements button (next to the quantity) and click + to enter a manual stock adjustment. Select ‘Remove Stock’ and enter the appropriate adjustment quantity and any notes. This would not work for unique items since the item status will still be “In Stock” so should only be used for multiples.

3. For Consigned unique Items ONLY: In the Expenses > Consignments tab, enter a Returned Date, which causes the status to change to "Consignment Returned". Additionally, add a note to the beginning of the item description that says ‘Lost / Damaged’ Item.

4. You could create a new category in Settings called “Lost or Damaged Items” and change the category of that item. However it would still have a status of "In Stock" or "Consignment Available" unless you use also one of the other options above.

5. Delete the stock item. Not generally recommended since you would lose all the history.

Orders and Expenses are all stored in the same part of the database, so you actually report on your orders via the Expenses module. Please click the screenshots below to enlarge.