How to Record Shrinkage and Write-offs, Step by Step

When an item is broken, expired or simply missing, the gap already exists on the shelf; the only thing left to decide is whether the system will ever hear about it. If that loss is not entered at the time it happens, the next physical count finds it on its own and nobody can say any more where it came from: not who had it in hand, nor on what date it disappeared. Recording the shrinkage is how you leave that evidence while the detail still has an owner.

This guide follows the whole process on the real application, from the «Stock Out» module to the print view, so the document can be checked before it goes on paper. The example writes off one unit of MAN-EN01 — ERGONOMIC CHAIR USER MANUAL EN for 350,000.00 in cost center 01 - Bodega Central, linked to partner 003 — Default Employee: the same walkthrough works for a broken container, an expired supply or a box that never turned up in the count.

Before you start

Access to the «Stock Out» module, which is where shrinkage documents are created.
The right active cost center: here the work is done in 01 - Bodega Central and it is switched with «Change Cost Center».
The code of the item being written off, already created in inventory (in the example, MAN-EN01).
The partner code and the code of the person preparing the document (003 — Default Employee), plus the exact units being written off.

Step by step

Step 1 — The main window

KardexTauro V3 opens in this window. The modules are on the left and the active cost center is at the top («Change Cost Center» changes it). This shrinkage is registered in cost center 01 - Bodega Central.

In the image:

1) Button «Stock Out»: stock-out module (sales, consumptions, shrinkage).
2) «Change Cost Center»: active cost center (01 - Bodega Central).

Texts on screen: «Stock Out», «Inventory», «Stock In», «Finance», «Change Cost Center»

Action: The side buttons open each module; these steps are done in «Stock Out».

Step 2 — The stock-out menu

Pressing «Stock Out» opens the menu of stock-out operations. «Shrinkage» is the shrinkage or reduction option: it writes off what was lost, broken or expired, recording who reports it.

In the image:

1) Button «Shrinkage»: opens shrinkage and reductions.
2) «Warehouse Consumption»: internal consumptions (another document).

Texts on screen: «Shrinkage», «Warehouse Consumption», «Internal Transfers», «Sales Invoices»

Action: Press «Shrinkage» to open the shrinkage list.

Step 3 — The shrinkage list

«Document List» opens. The master grid on top lists every document with its reference, the partner, the STATUS (CLOSED) and the total (01-MRM-8 | 003 | Empleado Genérico | CLOSED | 350,000.00 | 22/September/2026); below, the detail grid shows the lines of the selected shrinkage. The search box and the buttons are on the right.

In the image:

1) Button «New Shrinkage»: opens a blank shrinkage.
2) «View Shrinkage»: opens the selected document.
3) «Search»: refreshes the list.

Texts on screen: «New Shrinkage», «View Shrinkage», «Delete», «Search»

Action: Press «New Shrinkage» to register a new shrinkage.

Step 4 — The document: the partner and who prepares it

The document «Shrinkage or Reduction» opens. In the header, «Partner» is the partner the shrinkage is linked to (003 — Default Employee) and «Prepared By» the person who prepares or reports it. «Document» shows the number («NEW»: it is assigned when saving) and the date is on the right (22/09/2026).

In the image:

1) «Partner»: partner code (003).
2) Name (Default Employee).
3) «Prepared By»: prepared by (003).
4) «Document»: shrinkage number (NEW).

Texts on screen: «Partner», «Prepared By», «Document», «Partner»

Action: Type the partner code in «Partner» (or look it up with the magnifier).

Step 5 — The document: the product and the units

The body of the document holds what is being written off: «Product» is the product code and «Units» the quantity lost. Next to them are the product search and the button that adds the line.

In the image:

1) «Product»: product code (MAN-EN01).
2) «Units»: quantity written off (1).

Texts on screen: «Product», «Units»

Action: Type the product («MAN-EN01») and the units («1») and press the add button: the line enters the grid.

Step 6 — The line added and the total

The grid shows the line with the product, the units, the unit price, the tax and the subtotal. «Total Merma» summarises the value written off: 350,000.00.

In the image:

1) Grid: the written-off line (MAN-EN01 | ERGONOMIC CHAIR USER MANUAL EN | 1.00 | 350,000.00 | 19.00 | 55,882.35 | 294,117.65 | 350,000.00).

Texts on screen: «SubTotal», «Total Merma»

Action: Check the line and the total before saving.

Step 7 — Saving: the finish dialog

When you press «Save Document» the program asks to finish the shrinkage: it asks «Do you want to finish now? Or would you prefer to leave the document open to finish later?» and offers «Finish Now» (saves and closes it so it can be printed) or «Finish Later» (leaves it open to keep editing). «Shrinkage Total» is shown above: 350,000.00. This dialog does not ask for a payment method: a shrinkage is not charged, it only writes stock off.

In the image:

1) «Do you want to finish now? Or would you prefer to leave the document open to finish later?»
2) Option «Finish Now».
3) Button «OK»: applies the chosen option and saves.

Texts on screen: «OK», «Finish Now», «Finish Later», «Cancel», «Shrinkage Total»

Action: Choose «Finish Now» and press «OK»: without «OK» the shrinkage is not saved.

Step 8 — The saved shrinkage, ready to print

The program reports «Document processed successfully»: the shrinkage was registered as «01-MRM-9» and the stock of MAN-EN01 went down from 23.0 to 22.0; the stock ledger posted «-SHRINKAGE 01-MRM-9 · entra=0.0 · sale=1.0 · saldo=22.0». The document is still open, now in read-only mode, and its save button is labelled «Imprimir Documento».

In the image:

1) Button «Imprimir Documento»: opens the print view of the shrinkage.

Texts on screen: «Imprimir Documento»

Action: Press «Imprimir Documento» to open the print view.

Step 9 — The print view

The «Report Viewer» opens with the shrinkage exactly as it would be printed: header, the partner, the written-off line and the totals. Its top bar offers «Print, Export PDF, Save Report».

Action: Check the document and use those buttons if you want to print it, export it to PDF or save the report.

Result

The program reports «Document processed successfully» and the shrinkage is stored under its own number (01-MRM-9), with the status CLOSED. The result was verified by reading the program's database, not just the screen: stock for MAN-EN01 fell from 23.0 to 22.0 and the stock ledger posted the matching write-off entry. The document stays open, now in read-only mode, and that is where the print view is opened from.

Best practices

Enter the write-off on the same shift it happens: if losses pile up until month end, the partner and the date are lost for good.
Always attach the real partner rather than a generic one: that is the record of who reported the loss.
Check the line and the total before saving: once the document is closed, stock has already been reduced.
Keep the printed copy or the PDF together with the document number as support for the write-off.

Frequently asked questions

What happens if I leave the document open instead of finishing it?

With «Finish Later» it stays open so you can keep editing; with «Finish Now» it is saved and closed so it can be printed. In both cases you must press «OK»: without it the shrinkage is not saved.

Does a shrinkage ask for a payment method, like a sale?

No. The finish dialog never asks for one: a shrinkage is not charged, it only reduces stock.

Can I check the shrinkage before printing it?

Yes. Once it is saved, the save button is relabelled «Imprimir Documento» and opens the «Report Viewer» with the document exactly as it would be printed; from its top bar you can print it, export it to PDF or save the report.

This article is part of the Kardex Tauro V3 User Manual, which gathers every process in the system, explained step by step.

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