i am writing off some stock and need to journal it into my sage accounts, i know i need to take it out of stock 5000 but where do i put the written off stock value, what nominal code should i use?
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Credit stock, debit purchases, assuming it is not a huge quantity that would be require a note to the accounts.

Regards
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There's not really enough information in the question.

Can I guess that code 5000 is the normal purchases code in Sage, where you code purchases of stock for resale? And further guess that you don't track stock valuations live on Sage - just take a stock count at the year end? Your accountant then adjusts the final accounts.

If that's the case, no bookkeeping entry is required. The cost of the goods is already in the Purchases code, and will be charged to profit and loss account at the year end. There's obviously nothing in sales, so that's how the amount is deducted in the accounts.

You probably do need to keep a separate record of stock write offs, particularly if they are significant. This will be invaluable to explain variations in your gross profit percentage - the margin that you make on on your goods, before overheads such as wages and rent.

For example if you habitually buy widgets for ? and sell them for ?.50, your gross profit rate is 33% (50p profit divided by ?.50 sales price). So if you buy 1000 widgets you would expect sales to be ?500. If 50 of them are scrapped, then the sales reduce to ?425, and your record of scrapped items will explain to the VAT or tax inspectors why. Otherwise they may try to suggest that you've pocketed the missing cash! :eek:
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As David said above - it doesn't sound like you need to do anything if it's been posted in code 5000 in Sage... except possibly an adjustment to Closing Stock/Stock on Hand.

Depending how much you are writing off, and why - not only for VAT/Tax inspectors but for your own management it may be useful to identify this separately.

David Toohey
The Accountants Circle (http://www.accountantscircle.co.uk/)
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