Hi Debbie,

Yes you can:

Reducing the book value of an asset because it is overvalued compared to the market value. A write-down typically occurs on a company's financial statement, when the carrying value of the asset can no longer be justified as fair value and the likelihood of receiving the cost (book value) is questionable at best.

Write-downs are typically reflected in a company's income statement as an above-the-line expense, thereby reducing net income. This, however, is not always a bad thing, since a write-down is simply a paper loss, which, since it lowers net income, will reduce a firm's tax burden. Companies will usually attempt to time large write-downs together, so they can "take a bath" in one reporting period with the hope of quickly recovering in the next period.

I just need to know how or if I can do this in our SA system.

Seriously? This is how you respond on a forum where we come for help or give help?  I don't know why you've responded to me in such an argumentative manner.  If I wasn't clear to begin with you could have asked for clarification. Yes I did quote without credit.  It still doesn't negate the validity of the information.

FYI, of couse I checked the help on SA first. 

If I've read your tone incorrectly, I apologize, but this whole thing has felt like you've been less than helpful and only argumentative.

Since you're already using Sage, a solution would be to create a Provision for Devalued Inventory as a liability and enter the total amount of the inventory valuation write down as a credit to that account and a debit to an expense item, Inventory Devaluation.  Then in future periods absorb the appropriate write-down figure on a line-item basis when sold.  You'll need to maintain an "off-line" record of the write-down and subsequent absorption, of course.  Finicky.