Obsolescence Expense for Inventory Reserve Account

[ihikaru]

Hello,

Its end of year and have inventory that has become slow moving/obsolete that we need to adjust the value. We are crediting each department inventory reserve a dollar amount and debiting our Inventory obsolescence expense account that same amount. Our balance sheet shows the expense account under the COGS and a negative amount to get our net inventory value. 

What I need help with is on turbotax I can not find a place to put it in "Other Production-Related Costs" or is it already accounted for with ending inventory value?

[KeshaH · Accepted solution]

You can just adjust your Ending Inventory amount to account for the obsolete inventory. That will increase your Cost of Goods Sold.

[ihikaru]

Thank you.