E-commerce
Slow-Moving Inventory Reserve (Provision)
Creating a reserve for stock that has not sold in over 180 days and may need to be discounted.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Inventory Obsolescence Expense | Expense (+) | 4,500.00 | - |
| Allowance for Slow-Moving Inventory | Contra-Asset (+) | - | 4,500.00 |
💡 Accountant's Note
The prudence principle requires recognizing potential inventory losses before they are confirmed. An allowance account is used so the original cost remains visible in the ledger.
Professional Excel Template
Get the automated version of this entry. Includes built-in IFRS checks, VAT calculators, and SAP-ready upload formats.
QA
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.