Stock waste

George

How do you account for wastage of perishable food items, (fruit and veg)unsold at the day's end? I am aware of the principles of stock valuation, but wonder how they apply here, and what relief the trader can claim. Thanks in advance for any help.
George

PaulPSB

I would always advise the trader to keep a list of stock scrapped/binned with a note of values as part of their records. It will help if you ever have an enquiry and if you are looking for variances in margins etc.

In terms of making a claim the "cost" of the stock losses are in purchases and not in closing stock or sales hence the trader gets 100% relief

Hope that helps

Paul

pinksponk

In my former life I owned a food outlet. The cost of the waste was included in purchases. However, I did keep a record of waste mainly for purposes of trying to improve the amount, but also in case of any investigation or enquiries into the business.