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Subject Author Date
Classifying a replacement item... Terri 01-17-2008
Posted by Terri on January 17, 2008, 10:21 am
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 I sell a product that I advertise as irregular. Sometimes I replace that
product with a free one IF the product is not up to irregular quality. Of
course, I have to pay for a new item plus shipping at no cost to my
customer. This is my problem: I have to note it somewhere in Quickbooks but
I can't have a zero balance on the Invoice because it will not take it. It
actually is not a credit nor a refund - so? How do I classify this to have a
record at year end of replacements?
Hopefully I explained this properly.
Thanks!



Posted by dpb on January 17, 2008, 10:35 am
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 Terri wrote:
> I sell a product that I advertise as irregular. Sometimes I replace that
> product with a free one IF the product is not up to irregular quality. Of
> course, I have to pay for a new item plus shipping at no cost to my
> customer. This is my problem: I have to note it somewhere in Quickbooks but
> I can't have a zero balance on the Invoice because it will not take it. It
> actually is not a credit nor a refund - so? How do I classify this to have a
> record at year end of replacements?

I'd make a subaccount for the purpose and track the costs there and not
worry about "invoices" for them...

--

Posted by dpb on January 17, 2008, 3:24 pm
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dpb wrote:
> Terri wrote:
>> I sell a product that I advertise as irregular. Sometimes I replace
>> that product with a free one IF the product is not up to irregular
>> quality. Of course, I have to pay for a new item plus shipping at no
>> cost to my customer. This is my problem: I have to note it somewhere
>> in Quickbooks but I can't have a zero balance on the Invoice because
>> it will not take it. It actually is not a credit nor a refund - so?
>> How do I classify this to have a record at year end of replacements?
>
> I'd make a subaccount for the purpose and track the costs there and not
> worry about "invoices" for them...

Although I just tried it and QB did let me create an invoice for a new
item which has zero price associated with it if you really, really
want/need the invoice. Then you would keep the cost of that replacement
item as a COGS account, of course, as well as whatever overhead costs
are associated w/ processing the order, shipping, etc., ...

Seems doable that way as well...

> --

Posted by Terri on January 21, 2008, 9:51 am
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Need a bit more explanation. When you tried the zero balance invoice, was it
with the subaccount or the regular account AND what is COGS???
Thanks!

> dpb wrote:
>> Terri wrote:
>>> I sell a product that I advertise as irregular. Sometimes I replace that
>>> product with a free one IF the product is not up to irregular quality.
>>> Of course, I have to pay for a new item plus shipping at no cost to my
>>> customer. This is my problem: I have to note it somewhere in Quickbooks
>>> but I can't have a zero balance on the Invoice because it will not take
>>> it. It actually is not a credit nor a refund - so? How do I classify
>>> this to have a record at year end of replacements?
>>
>> I'd make a subaccount for the purpose and track the costs there and not
>> worry about "invoices" for them...
>
> Although I just tried it and QB did let me create an invoice for a new
> item which has zero price associated with it if you really, really
> want/need the invoice. Then you would keep the cost of that replacement
> item as a COGS account, of course, as well as whatever overhead costs are
> associated w/ processing the order, shipping, etc., ...
>
> Seems doable that way as well...
>
>> --



Posted by dpb on January 21, 2008, 10:55 am
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Terri wrote:
> Need a bit more explanation. When you tried the zero balance invoice, was it
> with the subaccount or the regular account AND what is COGS???
...

Since I don't have items, I just created an item w/ zero cost to see if
there was something inherent in QB's invoices that didn't like the zero
price you previously mentioned. My suggestion was if that was what you
were running into, you could add an item which was the replacement
product(s) and simply "sell" one of them to generate the invoice.

Alternatively, you could create a "discount item" for the replacement
and apply a 100% discount to it. Use the QB help under invoice--you
should find an entry "how do I?" for discount items describing how to do
that.

"COGS" is "cost of goods sold" -- QB has a definition of the term and
the discount help talks about keeping track of costs/expenses
associcated w/ discounts. In the other way (a separate item), you would
need to track the cost of the replacement somewhere as well--either
transfer a regular stock item or enter its cost when it is invoiced,
however is appropriate for how you obtain the replacement item(s).

--

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