How to Write Off Broken Crockery, Glassware, and Cutlery as a Breakage Expense
Expensing broken plates, glasses, and cutlery revealed during a regular inventory count.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Operating Supplies: Breakage Expense | Expense (+) | 55.00 | - |
| Operating Supplies (Inventory) | Asset (-) | - | 55.00 |
💡 Accountant's Note
Crockery is tracked as an operating supply. Regular physical counts reveal the monthly breakage rate, which is then expensed to keep inventory accurate.
Practitioner & Systems Framework
💻 ERP Architecture
Maintain crockery and glassware in a supplies inventory account at cost (purchase price ÷ number of items). Conduct monthly counts by category (plates, bowls, glasses, cups, cutlery). The shortage vs. prior count = breakage for the month. Write off at cost. Track the breakage rate per 100 covers served as an operational KPI — industry standard is 3–5% per month. Excessive breakage may indicate staff handling training issues.
⚠️ Audit Flags
Large crockery write-offs without corresponding operational records may be used to reduce taxable income. Auditors may question write-offs that are disproportionate to cover count or that occur without a supporting physical count. Photographs of broken items add credibility to significant write-offs.
📄 Required Documentation
Physical count sheet (by category, prior count vs. current count), breakage calculation, Operating Supplies Expense ledger, breakage per 100 covers KPI trend, photograph evidence for large individual breakages, and monthly breakage report signed by the restaurant manager.
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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.