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Liquidation of Non moving & slow moving inventory would ideally be liquidation of aging inventory. These have been previously ordered but their movement is very slow or are slow sellers. Can be dead stocks also These sku's should be removed from active sku listing / replenishment while they are being tried to be sold through some promotional schemes.
Slow moving inventory may lose their economic value with the passage of time and in line with standard accounting practice a provision has to be made in the account reflecting the lost value. Eventually, when these items become un-saleable and destroyed they are written off the account using the earlier provision made in the account
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