Write-Off: Spoilage and Breakage in IZI — Types, Procedure, Recording
Write-Off: Spoilage and Breakage in IZI — Types, Procedure, Recording
Section titled “Write-Off: Spoilage and Breakage in IZI — Types, Procedure, Recording”A manual write-off is the operation for losses without a sale. Everything that leaves the warehouse without going through the register must be recorded through a write-off — otherwise the system shows stock that physically does not exist, and the stock count will consistently show a deficit.
Types of Losses and How to Record Them
Section titled “Types of Losses and How to Record Them”Expiry (Past Best-Before Date)
Section titled “Expiry (Past Best-Before Date)”When: the item has reached its expiry date and cannot be sold.
Procedure: write-off with reason “Expiry.” Recommended to check dates weekly — especially for dairy products, sauces, and items with a short shelf life.
Recording: include in the comment the expiry date and the invoice position. This helps when filing a claim with the supplier if the item expired quickly.
Breakage and Physical Damage
Section titled “Breakage and Physical Damage”When: a bottle or can was dropped and broken, packaging is damaged to the point the item cannot be sold, product was deformed during storage.
Procedure: write-off immediately when discovered — do not defer to the stock count. Reason “Breakage / Damage.”
Prevention: check storage conditions — bottles should not stand on the edge of a shelf, bottom rows should not be under pressure from heavy items above.
Customer Gifts and Complimentaries
Section titled “Customer Gifts and Complimentaries”When: goods given to a customer without payment — tournament winner, regular customer’s birthday, promotional offer.
Procedure: manual write-off with reason “Gift” or “Promotion.” Include the occasion in the comment.
Why you cannot ignore this: gifts are a real cost expenditure. If not recorded, they will show up as a “shortage” at the stock count and get mixed with real losses.
Internal Consumption
Section titled “Internal Consumption”When: goods used by staff (tea, coffee, shift snacks).
Procedure: manual write-off with reason “Internal Use.” Convenient to do as one operation at shift end rather than per cup of tea.
Recommendation: set a consumption norm per shift (e.g., 2 boxes of tea, 1 pack of sugar) and write off by norm. If actual usage regularly exceeds the norm — time to review the policy.
Step-by-Step Write-Off Procedure
Section titled “Step-by-Step Write-Off Procedure”1. Go to the Write-Off Section
Section titled “1. Go to the Write-Off Section”Bar → Warehouse → Write-Offs → New Write-Off
2. Select the Item
Section titled “2. Select the Item”Type the name or choose from a category. The system shows the current balance.
3. Enter the Quantity
Section titled “3. Enter the Quantity”Enter the number of units to write off. You cannot write off more than the current balance — the system will not allow a negative.
4. Choose the Reason
Section titled “4. Choose the Reason”The list of reasons is configured in your CRM version. Typical options:
- Breakage / Damage
- Expiry
- Internal Use
- Gift / Promotion
- Shortage
Choose the most precise reason — this is important for loss analysis by category.
5. Add a Comment
Section titled “5. Add a Comment”Required for large write-offs: “6 Red Bull cans, broken during unloading 31.05.” For regular internal consumption a standard comment works: “Shift [date].“
6. Confirm
Section titled “6. Confirm”Click Write Off. Stock decreases immediately. The record appears in movement history.
Control and Approval
Section titled “Control and Approval”Separating by scale protects against misuse:
| Write-Off Type | Who Processes |
|---|---|
| 1–3 units of a low-value item | Administrator independently |
| More than 5 units of any item | Staff member with write-off approval permissions, or with their confirmation |
| High-value items | Staff member with write-off approval permissions only |
| Labeled goods (Russia-specific, see below) | Per regional regulations |
This rule is set by the club owner. In IZI, the owner controls it through role permissions: the built-in Administrator role handles routine write-offs, while for larger quantities the owner can create a custom role (for example, named “Manager” or “Senior Shift Lead”) with elevated write-off rights and assign it to the appropriate staff members.
Fiscal Requirements in Regulated Regions
Section titled “Fiscal Requirements in Regulated Regions”Russia
Section titled “Russia”In Russia, write-offs of labeled goods (alcohol, beer, non-alcoholic beverages with mandatory labeling, tobacco, dairy) require data transmission to state labeling systems:
- EGAIS — for alcohol and beer
- Chestny Znak — for other labeled products (water, dairy, tobacco)
A write-off operation in IZI records the removal in CRM. To transmit data to EGAIS / Chestny Znak, use the corresponding module or integration. More on working with Chestny Znak → Chestny Znak: Labeling.
Acts for disposal of expired alcohol are prepared using the form established by Rosalkogolregulirovanie (Russia’s alcohol regulator). Consult your accountant for the specific requirements of your license.
Other Regions
Section titled “Other Regions”In most regions, requirements for recording spoilage and breakage write-offs are governed by internal company policy. It is recommended to keep write-off acts for large batches (signed by a responsible staff member) in case of a tax audit.
Loss Analysis
Section titled “Loss Analysis”Regularly review: Bar → Warehouse → Movement History, filter “Type: Write-Off,” for the relevant period.
What to look for:
- Which items are written off most frequently
- Trends by reason: if “breakage” is growing — storage problem; if “internal use” is growing — time to set a norm; if “shortage” is consistent — a signal for investigation
Identified trends can be used to revise the menu (remove items with high losses), reconsider the supplier (if breakage happens during delivery), or adjust the internal consumption norm.
Related Pages
Section titled “Related Pages”- Inventory Procedure — how to systematically identify losses
- Inventory Discrepancy: Investigation Algorithm — what to do when losses are large
- First Goods Receipt — correct receiving reduces future discrepancies
- Chestny Znak (Russia) — requirements for labeled goods
Frequently asked questions
How does a manual write-off differ from an automatic one?
An automatic write-off happens with every bar sale — the system reduces stock on its own. A manual write-off is for losses without a sale: a bottle broke, an item expired, taken for staff use.
Is manager approval needed for every write-off?
Depends on club policy. Recommended: small losses (1–2 units of an inexpensive item) — the Administrator handles independently; large ones (more than 5–10 units or high-value items) — require confirmation from a staff member with elevated permissions. This reduces the risk of misuse.
How do I write off goods that cannot be returned to the supplier?
A write-off in IZI records the removal from stock. How to physically dispose of goods is governed by club policy and local legal requirements. The system records the fact of the write-off with a reason.
Can an erroneous write-off be reversed?
There is no direct undo. Restore via a new receipt for the same quantity with the comment 'Correction of erroneous write-off from [date]'.
How do I account for gifts to customers from warehouse stock?
Process as a manual write-off with reason 'Customer Gift' or 'Promotion'. This records the actual cost expenditure and prevents undercounting cost through unrecorded handouts.