How do I categorize free marketing materials I send to wholesale accounts?

Hi @hosbrook41,

Thank you for posting here in the Community. I'm here to help you handle sample materials in QuickBooks Online. 

Since the free marketing materials are added together with the orders, I recommend adding the samples as Inventory. This way, you'll be able to track the quantity when the system decreases what's on hand by the amount entered on the sales transaction.

When adding the samples, enter the quantity and a zero sales price (see screenshot below).

You can use a report to track your remaining stocks for the samples. I recommend using the Physical Inventory Worksheet report.

Here's how:

1. On the left navigation bar, click Reports.
2. Scroll down and select Physical Inventory Worksheet under Sales and Customers.
3. Press Customize.
4. Make the necessary changes to the filters and columns.
5. Hit Run report. 

I recommend including the cost amount in the item's information (see additional screenshot below). You can create another expense account (COGS type) to track the cost separately. If you need a report, check out Purchases by Product/Service Detail.

If you need to adjust your inventory and move the Cost of Goods to a Promotional Expense account, check out this page: Write off inventory items given as promotional samples.

Also, I suggest consulting an accountant for expert advice. They can provide additional guidance on how to handle the items, as well as the costs.

I've attached an article you can use to learn how to add a product's purchasing info in QuickBooks: Add product and service items to QuickBooks Online.

Feel free to hit that Reply button if you need more help tracking these items. Have a great day ahead.