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Frequent Contributor *

Free given samples

We are buying items with boxes and on quickbooks online our products are with boxes.
But sometimes we give free sample not the whole box but 1 piece from the box.
How to account samples correctly in this case?

Solved
Best answer 06-12-2019

Accepted Solutions
QuickBooks Team

Re: Free given samples

Thanks for getting back to me, Malakan bookkeeping.


Yes, you’ll need to record the inventory by piece in QuickBooks before selling it by pieces. For instance, one box cost $100 and has 10 pieces. You can enter $10 for cost and 10 on the quantity during the initial recording of the item. 


You can also refer to this article for your future buying and selling inventory transactions: https://quickbooks.intuit.com/community/Inventory-and-projects/Buying-and-selling-inventory/m-p/1862...

 

Let me know if you need anything else. It’s my pleasure to help you anytime. 
 

4 Comments
QuickBooks Team

Re: Free given samples

Hi, Malakan bookkeeping.

 

Were you able purchase the inventory by box and recorded and sell it by piece? If so, you can easily account free given samples in QuickBooks Online. This will involve the following processes:

  • Creating an expense account for tracking. 
  • Creating an invoice for the item. 
  • Running a Profit and Loss report. 
  • Creating a journal entry. 

Through this, you’ll be able to adjust the inventory and move the COGS to a Promotional Expense account. For the step by step instructions, please refer to this article: https://quickbooks.intuit.com/community/Help-Articles/How-to-write-off-inventory-items-given-to-cust...


Please feel welcome on dropping by again if there’s something else you need. 
 

Frequent Contributor *

Re: Free given samples

It means that for selling we need to create the same product by piece?

QuickBooks Team

Re: Free given samples

Thanks for getting back to me, Malakan bookkeeping.


Yes, you’ll need to record the inventory by piece in QuickBooks before selling it by pieces. For instance, one box cost $100 and has 10 pieces. You can enter $10 for cost and 10 on the quantity during the initial recording of the item. 


You can also refer to this article for your future buying and selling inventory transactions: https://quickbooks.intuit.com/community/Inventory-and-projects/Buying-and-selling-inventory/m-p/1862...

 

Let me know if you need anything else. It’s my pleasure to help you anytime. 
 

Established Community Backer ***

Re: Free given samples


@Malakan bookkeeping wrote:

We are buying items with boxes and on quickbooks online our products are with boxes.
But sometimes we give free sample not the whole box but 1 piece from the box.
How to account samples correctly in this case?


@MikiD 

the referenced link is overly complicated and details an unnecessary procedure, as well as being incomplete

 

@Malakan bookkeeping

If you give a sample to a customer during a sale, add the item to the invoice or sales receipt and set the sales price to zero. In this instance the cost of the item is COGS since it is associated with a sale.

If you just give the item to someone and there is no sale, use inventory adjust, set the adjusting account to samples expense, and lower the qty of the item, save.

 

I can't see a reason to add everyone as a customer that you hand out samples to, but if you want to do that and keep a record of who you gave samples to, then it gets a little more complicated.

put the item on a sales receipt for the new customer, set the sales price to zero, save.

report on the COGS account to find the cost of that one sale and do a journal entry

debit samples expense , credit COGS for that amount.