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C
Commheat
April 12, 2024
Question

How to record an item we damaged and replaced it under warranty for the customer?

  • April 12, 2024
  • 1 reply
  • 0 views

Hi

Need clarification on how to do this properly. Never had to until this week. 

We installed lets say a motor on a customer machine. It burnt out because it was wired wrong. We bought another motor and replaced it. No charge to the customer.  How do I record the purchase of the new motor (inventory, GL accts, etc) and then have it reflect on the customers invoice but show that there was no charge for the item (invoice was created b/c he had us do other stuff while we were there). 

 

Do I record the purchase of the new motor as its normailly done by entering the item in inventory with tagging the customer? Do I record it under the Expenses tap, Damaged Items acct?  Do I bring the motor onto the invoice and just 0 out the price for it? This way it shows on the invoice and comes out of inventory? I tried that and I got a pop up warning about profit and loss and other reports won't be accurate..

 

What is the correct process for this? 

Thank you

Melissa

1 reply

L
LollyNino_C
April 12, 2024

Welcome to the Community, @Commheat. Let me share some information about recording an item in your QuickBooks Desktop (QBDT).

 

Yes, I agree. You can record the purchase of the new motor by entering the item in inventory. However, I'd recommend reaching out to your accountant first. This way, your accountant can decide which accounts to use to properly track your inventory.

 

Making adjustments to a product's quantity is a common practice to monitor any change in the product count that is not due to a sale or purchase. This helps keep track of the inventory when items break or when there are discrepancies in the inventory count. For your reference, check out this article: Adjust your inventory quantity or value in QuickBooks Desktop.

 

If you use QuickBooks Payments and want to void or refund a payment from your customer, check this article: Void or refund customer payments in QuickBooks Desktop.

 

If you have any questions or concerns about recording a refund or other QBDT-related issues, please don't hesitate to comment below. I'll do my best to provide you with the answers you need.

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