This should be an expense account. When you mark an item lost, stolen, or missing, the cost of that inventory is posted to this account. If an item is later marked found, the value of that item is recouped from this account.
To identify missing items:
Use Reports > Inventory with a Status of Missing. Set the date range as appropriate. For example, after a physical inventory in January, run an Inventory report for all items with Status of Missing and dates changed in January. This would tell you what was marked missing during the January inventory.
Procedures
For missing items:
- Mark the item as missing in The Edge inventory. When the item is marked missing in The Edge, the value of the primary inventory asset is already reduced and posted to the designated expense account and the item is no longer available for sale.
- Make sure your accountant is aware of this expense account to properly record these missing items as a loss. The report above will assist with this.