We recently had about $17,000 of food product go bad. We tried to just subtract it from our inventory by creating an order for the total quantity and then giving it a 100% discount. Unfortunately, this shows up as $17,000 in sales with a $17,000 discount, which skews our reports. How can we properly subtract this inventory to show them as a loss rather than sales?
The problem I see is that Shopify only tracks revenue. It does not track expenses or the cost of goods sold (COGS).
I guess you would have to record this loss in your accounting software, not Shopify.
Regarding the inventory count, you can simply update the inventory quantity by going to https://myshopify.com/admin/products/inventory, clicking the variant, and editing the Quantity field.
Hi there Brad!
My name is John and I'm a Guru here at Shopify!
As Clement said above, the Shopify platform itself only tracks the sale price of goods, not the cost price or the difference between them.
However, there is the excellent Profiteer app for adding 'cost-of-goods-sold' functionality to your store.
You can grab the app for free for 3 days to see if it will be helpful for your needs, as well as checking out the app developers website if you have any further questions on its functionality.
Best of luck with this!