# Shrinkage

> Shrinkage — The units a physical count finds missing against the perpetual record — loss, theft, damage, miscounted receipts — taken out of inventory at cost as a loss of the period.

Source: https://lopifi.com/glossary/shrinkage
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is shrinkage?** In accounting, shrinkage means the units a physical count finds missing against the perpetual record — loss, theft, damage, miscounted receipts — taken out of inventory at cost as a loss of the period.

## Also known as

- Inventory shrinkage

## Words this system refuses for it

- write-down (goods still there, worth less)
- cost of revenue unqualified

- **Category:** Statements
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** inventory, period