What is Material damage (caused by an employee)?

Damage caused through an employee's fault as a result of a shortage, theft or spoilage of the company's cash or inventories. The employee's debt for compensating it is accounted for in account 4730; when property is stolen, found short, deliberately destroyed or deliberately damaged, and in other cases, the amount of damage is calculated at market value (NAS No. 21, paragraphs 202–203).