How to Write Off Broken Crockery and Glassware from the Restaurant Operating Supplies Inventory
Expensing the cost of broken or chipped plates, glasses, and cutlery through regular operating supplies write-offs.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Operating Supplies: Breakage | Expense (+) | 40.00 | - |
| Operating Supplies (Inventory) | Asset (-) | - | 40.00 |
💡 Accountant's Note
Crockery is handled as an operating supply. Regular inventory counts of 'par stock' determine the monthly breakage expense.
Practitioner & Systems Framework
💻 ERP Architecture
Crockery, glassware, cutlery, and other restaurant service ware are classified as Operating Supplies and Uniforms (OS&U) in USALI. They are capitalized when purchased and expensed through breakage write-offs based on monthly inventory counts (par stock methodology). The par stock level is the target quantity of each item needed for full service — shortfalls between the par and the physical count represent the breakage expense for the period. Track breakage separately by outlet (restaurant, bar, banquets) to identify abnormal breakage patterns.
⚠️ Audit Flags
Auditors compare the breakage expense as a percentage of F&B revenue against industry benchmarks. Unusually high breakage may indicate pilferage rather than accidental breakage. Par stock levels must be realistic and reviewed periodically — an inflated par level automatically generates a large breakage expense without any actual breakage. Physical count procedures must be witnessed by a supervisor.
📄 Required Documentation
Par stock schedule per item and outlet, monthly physical count sheets (signed by supervisor), breakage expense calculation (par minus count × unit cost), Operating Supplies inventory update, breakage rate as % of F&B revenue analysis, and unusual breakage investigation records.
Automate this entry with the JEH Accounting Suite
Stop doing manual entry. Our VBA-powered ERP automatically generates your ledgers, Trial Balance, and Financial Statements.
No Subscriptions. Own your data.
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.