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We slaughtered a heiffer for personal consumption. What is the best way to record this and have it affect inventory properly? We're a corporation and would typically use shareholder drawings for personal expenses, but I can't seem to link personal draws to inventory accounts. Grateful for your assistance.
Hi Richard!
Essentially what you are doing is "purchasing" the heifer from yourself. You are on the right track to use shareholder's drawings to offset the transaction. What you are missing is that you need to claim the "income" from the sale, even though the income is only implied.
You will want to do this transaction in the Transaction Entry screen. Select Deposit as your transaction type, and enter the date, reference and description. Keep the Total as 0.00 - there is no cash changing hands.
On your first line, claim the "income" for the sale of the heifer. You need to mark this sale at fair market value - as if you were selling at an auction, for instance. Then, on the second line, you can offset to the shareholder's drawings account as you had mentioned. This will create a balanced transaction that will 1) claim the necessary income, 2) reduce your inventory as needed, and 3) affect the shareholder's drawings.
I hope this helps!