Stock waste

George
George Registered Posts: 43 Regular contributor ⭐
edited June 18 in AAT member discussion
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

Comments

  • PaulPSB
    PaulPSB Registered Posts: 55 Regular contributor ⭐
    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
    pinksponk Registered Posts: 57 Regular contributor ⭐
    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.

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