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-scentpacking-co
Apr 22, 2024 11:16 AM UTC
Question

How do I record inventory used to build promotional items for display purposes

Original commenter did not share additional details

5 replies

Sherrie_F
Apr 22, 2024 12:19 PM UTC

You got me here to help you adjust your inventory used for promotional items in QuickBooks Online (QBO), @-scentpacking-co.

 

To start with, we can create an expense account for tracking.

 

Here's how:

 

  1. On the upper right corner, look for the Gear icon.
  2. Select Chart of Accounts.
  3. Choose New.
  4. Click Expenses for Account type.
  5. For Detail type, choose Advertising/Promotional.
  6. Enter the name of the Promotional Samples.
  7. Hit Save and Close.

 

Once done, creating an invoice for the item would be the next step. Doing this will reduce the number of items in your inventory. I'd be glad to show you how:

 

  1. On the upper left corner, click + New.
  2. Choose Invoice and complete the fields.
  3. Click Save and close.

 

Lastly, we can run a Profit and Loss report on Accrual basis to see the income and cost of goods amount you need for your journal entry. However, doing a journal entry credits the customer in the Accounts Receivable and it'll also credits Cost of Goods. 

 

You can also seek assistance from your accountant if you need further guidance about writing off inventory in your QuickBooks Online account. If you don't have one, you can use our Find-an-Accountant tool to look for an expert near you.

 

Furthermore, I'm adding an article you can always browse in case you need assistance setting up alerts for products that are running low or out of stock in QuickBooks Online: Set up low stock alerts in QuickBooks Online.

 

If you still have further queries about inventory items or anything else about QuickBooks, please feel free to let me know by dropping some comments below. I'm looking forward to delighting you again with further assistance. Stay safe.

-scentpacking-coAuthor
Apr 22, 2024 12:25 PM UTC

Hi - thanks for this but I'm afraid it doesn't answer my question. I need to reduce the inventory and record the cost of those items as a promotional spend. You have described how to create the expense account, which I have done, but then you describe how to invoice a customer. There is no customer. It is using inventory items to create an advertising sample for display. How do I record that? Thanks! Gavin

Aldren18
Apr 22, 2024 4:09 PM UTC

Hi there - thanks for taking the time to reply. I'm afraid it still doesn't deal with my query. I cannot stress this enough, there is no customer. There isn't anyone to invoice. I use my own raw materials to build something that I would normally sell, but I don't sell it, I use it as a demonstration piece. It is never sold, there is never a customer to invoice. It stays as a permanent display piece. So permanent in fact, it's screwed to a wall.

 

I just need to expense the COS to the promotions account, and have the inventory adjust. Any ideas would be welcome. Thanks.


Hi there, @-scentpacking-co. 

 

I'll share some insights on how you can properly record inventory items for promotional purposes.

 

As my peer suggested, creating a Journal Entry will help reduce inventory and record the cost of promotional items.

 

It is recommended to consult with your accountant to choose the appropriate account instead of using accounts receivable for this purpose as there is no customer involved.

 

Here's an article that will guide you through setting up alerts for products that are low or out of stock in QuickBooks Online. Set up low stock alerts in QuickBooks Online.

 

If you have any further questions regarding inventory items or anything else in QuickBooks, please don't hesitate to let me know by leaving a comment below. I look forward to assisting you again soon. Stay safe!

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