I have a few ?s. 1. We buy products & finish them to display as samples, how do I record? 2.How to record items that are damaged during production? Thank you!

Answer

Hello there, eztaxservices104,

Let's record the sample products as well as the items that were damaged during production.

You need to account each inventory item if you're giving samples to customers. Here's how to record them in QuickBooks:

  1. Create an Expense Account in the Chart of Accounts to track. View Chart of Accounts, Page 44-45.
  2. Create an Invoice for the item. View Invoice, Page 85-90.
  3. Run a Profit and Loss report in Cash Basis for the date of the Invoice to see what amount of Income and Cost of Goods are needed for the Journal Entry amounts.
  4. Create a Journal Entry. This removes the Income, credits the Customer in Accounts Receivable, and credits Cost of Goods to record the Expense. View Journal Entry, Page 55-56.
  5. Apply the Credit MemoView Credit Memo, Page 111-112.

With regards to your second concern, you can manually adjust the item's quantity in the Inventory adjustment account field. You need to enter a new quantity of the item, this will remove the number of items that were damaged during production.

After saving the inventory adjustment, QuickBooks will automatically records it to your stock Asset and Cost of Goods Sold accounts.

That's it. By performing the steps above, you'll be able to record the sample products and the damaged items in QuickBooks.

Please feel free to leave a comment if you have further concerns about recording inventory items in QuickBooks for Mac. I'm just around if you need help.

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