---
title: "Inventory write-off"
description: "What is an inventory write-off? Removing lost, damaged or stolen stock from the books at cost. Learn why reasons matter and how it differs from a write-down."
url: https://1flux.ai/glossary/inventory-write-off
last_updated: 2026-10-10
---

[Procurement and inventory](https://1flux.ai/glossary#procurement-and-inventory)

# Inventory write-off

What is an inventory write-off, and how is it different from a write-down?

Glossary Updated 10 October 2026

Definition

An inventory write-off removes stock that is lost, damaged, expired or stolen from the books, recording its cost as an expense.

## What is an inventory write-off used for?

Write-offs make the stock records match reality and show the true cost of shrinkage. Each one should carry a reason, so management can see whether losses come from handling damage, theft, expiry or something else, and a value at cost.

Example: a warehouse writes off 12 cartons of sealant past expiry, valued at GBP 230, with the reason Expiry.

A write-down is different: the goods still exist but are now worth less than they cost. Large or frequent write-offs usually need a manager’s sign-off, and both reduce [inventory valuation](https://1flux.ai/glossary/inventory-valuation).

In 1flux

Every write-off needs a reason (spoilage, expiry, damage, theft, shrinkage, evaporation, sample, quality reject or other), is valued at cost and posts to the ledger. [See stock counts, transfers and wastage](https://1flux.ai/products/inventory/stock-control)

Related

## Keep exploring

### [Stock count](https://1flux.ai/glossary/stock-count)

Counting physical stock and comparing it with the system.

### [Inventory valuation](https://1flux.ai/glossary/inventory-valuation)

The money value of the stock you hold.

### [Cost of goods sold](https://1flux.ai/glossary/cost-of-goods-sold)

The cost of the stock sold in a period.

### [Stock control](https://1flux.ai/products/inventory/stock-control)

Snapshot counts, transfers and write-offs with reasons, each difference posted at cost.

Last updated 10 October 2026