Car Dealership - Trade-in

Hello there, pwstill.

I can show you the process of how we handle trade-in workflow in QuickBooks Online.

We'll just have to create the trade-in product as the non-inventory item and create another entry to add in quantity and cost to inventory. to add a line for the trade-in items as a negative amount. Then, create a sales receipt showing the trade-in item as negative. 

First, create a clearing or wash account. 

1. Select Chart of Accounts.
2. On the Chart of Accounts screen, click the New tab.
3. Choose Bank for the Account Type. You may choose any detail type you want for your clearing account.
4. Type in the Name for the clearing account like Trade-in Inventory clearing.
5. Make sure you do not type in any amount on the balance before clicking Save and Close.

Second, enter a new product/service item for the trade-in credit. Let me show you: 

1. Click the Sales menu and select Product and services.
2. At the upper-right, click New.
3. Enter the name something like Trade-in and select the I sell this product/service to my customers.
4. You can leave the price rate blank and select the clearing account you entered earlier.
5. Click Save. 

Then, create a sales receipt for the sales. 

1. Click the +New button and select Sale receipt.
2. Enter the sales details. 
3. In the first line, select the product item you're selling.
4. For the second line, select the newly created “Trade-In Credit” item as negative.
5. Review the amount and click Save and close.

After entering the sales, you can enter a bill to add in a used item as inventory on hand. I suggest reaching out to an accountant for the whole process so they can help you select the correct accounts based on your business preference.

In case you need tips and related articles in the future, visit our QuickBooks Community help website for reference: QBO Self-help. 
 
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