How to record stock that has been scrapped

This article explains how to record a stock item that has been scrapped in FreeAgent.

Please note that FreeAgent's stock functionality won't be available if you have an unincorporated landlord account or if you're preparing your accounts using cash basis accounting.

If you’ve sold stock rather than scrapped it, find out how to record the sale of stock.

Navigate to the 'Banking' tab at the top of the screen and select 'Bank Accounts' from the drop-down menu.

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Choose your business bank account from the list.

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Select More’ and choose ‘Add Transaction’ from the drop-down menu.

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Select ‘Sale of Stock’ from the ‘Type’ drop-down menu and leave the value as nil.

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Select the stock item you scrapped from the ‘Stock Item’ drop-down menu, enter how many units were scrapped in the ‘Quantity’ field and select the relevant income category from the ‘Category’ drop-down menu. You can create a new income category if you need to.

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Once you’ve entered the relevant details, select ‘Create and Finish’ to complete the process.

What happens next?

When you scrap stock, the quantity you have on hand (i.e. available) will go down.

To check your quantity of stock on hand, select 'Settings' from the drop-down menu in the top-right corner and then select 'Price List & Stock'.

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Select the 'Stock' tab.

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The ‘Current Stock on Hand’ is how many units you have on hand at the moment, after recording any sales and purchases. This number will increase as you buy stock and decrease as you sell or scrap stock.

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