We are a used vehicle dealership and I am having the issue of invoicing customers who have a trade. We put a trade allowance on a vehicle being traded for another vehicle and on the back end we will give it an ACV (actual cash value) which typically results in a loss of profit. From all the forums I have read, it says I should receive payment against the invoice for the trade allowance and to create a dummy bank account for it to be deposited into and then turn around and pay for the trade in inventory out of that same dummy account. My question is how and where do you record the loss between trade allowance and the ACV ?
... View more