To remove items from inventory for store use, you create a business expense account by adding your shop as a tax-exempt customer with a large credit limit. Then, when you remove an item for store use, you record it as a sale to your shop. To track how much inventory your shop is using, run a customer sales history report. Removing items from stock is better than doing an inventory adjustment because adding them to a sale records them as business expenses.
To create a business expense account
- From the main menu, click Customers > Customers > New Customer.
- Add your shop details and change the Sales Tax from Default/None to another tax exempt status. If you don't have one you can create one in Settings > Sales Taxes.
- Click Save Changes.
- In the left menu click Account > Create Account Now.
- Enter a large amount for the credit limit and click Save Changes.
To record items removed from inventory
- On the Main Menu click Sales > New Sale.
- Add your business expense account as a customer to the the sale.
- Add the items you're removing from stock to the sale.
- Click Payment and beside Account click Max.
- Click Finish Sale.