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ryanavarisource
Level 2

Deducting Inventory Write Downs from Sales Rep ID Gross Profit

We run enterprise wholesale and manufacturing 2019 and carry inventory.  I am having an issue on how to write down the cost of goods for customer returned products and inventory liabilities that are tied to specific sales reps.  Ideally, i'd like to hit the Sales Rep's Gross Profit number so we can calculate commissions after any costs for write downs, bad purchases, etc that are a direct responsibility of the sales rep.

 

I know you can tie expenses in the Enter Bill feature to a specific sales rep ID but you can't tie inventory write downs/transactions to a sales rep ID. 

Any insight would be awesome- thanks!

3 Comments 3
Anonymous
Not applicable

Deducting Inventory Write Downs from Sales Rep ID Gross Profit

Is not a great solution - but you could use an internal zero price sales receipt as a way of removing inventory which can be linked to a Sales Rep.  But if you need to 'write down' the value without removing the quantity it wont work.

 

Alternately consider creating a master customer called "sales Rep' and Jobs for each Sales Rep ID.

Then use these Jobs as a way of tagging non-sales transactions so they can be tracked back to the Rep.  But if each customer is assigned to a Sales rep then you can simply track expenes to customer names and cross those to Reps later.

Rustler
Level 15

Deducting Inventory Write Downs from Sales Rep ID Gross Profit

When inventory that has been sold is returned, one of two things is true

you refund or maintain a cutomer credit for the customer, if that is the case tag the refund/credit with the sales rep

or, you take the item and give a good one to the customer - in that case there should be no adjustment to the reps sales amount.  Issue the item on a sales receipt for a zero sales price

I am  not sure what you mean by write down, the item was sold and cost was posted.  If you get it back you are either taking it back to be trashed - in which case there is nothing to write down, the replacement item on a sales receipt for a zero sales price posts the cost.  Or, you are getting it back to return to the vendor or repair it in house, if that is the case put the item on a sales receipt with a negative qty (that restocks it and pulls cost out of COGS) then list the item going back to the customer.

the item that was returned for return to the vendor should then be put on a vendor credit memo to get it out of inventory, or in desktop only, adjust inventory and move that qty & value of the item to a new item, widget-used, since you can not sell a used/refurbished/repaired item as new.

qbteachmt
Level 15

Deducting Inventory Write Downs from Sales Rep ID Gross Profit

It isn't clear what is "inventory liabilities?"

 

And this has been asked  Twice. The other version is here:

https://quickbooks.intuit.com/community/Reports-and-accounting/How-do-I-write-down-inventory/m-p/235...

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