Write offs occur when an item has a remaining capitalized value on the Postal Service’s accounting books. This is the capitalized central inventory for stocked consumables and spares, as well as the undepreciated values in the property accountability systems for equipment. Write offs for inventory items are taken against a specialized account managed by Materials Production and Distribution. Write off of the undepreciated value of equipment is paid for by the owning organization against its operating or program budget. The value in both cases is determined by the book value less any returns that can be gained through any salvage value.
The client and item manager must inform the purchase/SCM team of inventory items that are written off so that future investment recovery plans, inventory control plans, and demand forecasts can be updated appropriately.
