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September 16, 2017
Solved

How to enter samples in quickbooks

  • September 16, 2017
  • 2 replies
  • 5 views

I am trying to record sending samples.

It effects invneotry and cost, does anybody know how to set it up? 

    Best answer by lynda11_2

    Which product of qb do you use?  Online or desktop?  

     

    For qbo, here is a great answer from Rustler:

    You can not do it with one step in QBO as you should (and you can in desktop), it takes three steps

    use inventory adjust to lower the qty and move the average cost to COGS-shrinkage
    look at the transaction in COGS-shrinkage to find the amount QB used
    do a journal entry

    debit sample expense
    credit COGS-shrinkage

     

    For desktop qb:  See this post. This is the info from it:

     

    Determine the cost of the sample. Do not consider the retail value of the sample; just figure out how much it cost you. If you have given a customer one widget from a box of 10 widgets and your cost for the box is $10.00, the cost of the sample is $1.00. If the product is something you have manufactured, you need to know the cost of the raw materials used to make the sample. Do not include the value of your time spent manufacturing it.

     

    Create a cost of goods sold account named "Samples." Click on "Company" and choose "Chart of Accounts." At the bottom of the screen choose "New" from the "Account" drop-down menu. Choose "Other Account Types" and choose "Cost of Goods Sold" from the drop-down menu. Click "Continue" and name the account "Samples" on the next screen. Give the account a description, if desired. Click "Save & Close" when you are finished.

     

    Create a journal entry. Go to "Company," "Make General Journal Entries" and enter the date you gave out the sample for the entry date. Debit "Samples" for the cost of the sample and credit "Inventory" for the same amount. Use the Memo column to describe the transaction. A proper description would be "To record cost of sample given to customer." You may want to use the customer name, if available, in the description.

    Click "Save & Close" when you are done.

     

     

    2 replies

    lynda11_2
    lynda11_2Answer
    Level 5
    September 16, 2017

    Which product of qb do you use?  Online or desktop?  

     

    For qbo, here is a great answer from Rustler:

    You can not do it with one step in QBO as you should (and you can in desktop), it takes three steps

    use inventory adjust to lower the qty and move the average cost to COGS-shrinkage
    look at the transaction in COGS-shrinkage to find the amount QB used
    do a journal entry

    debit sample expense
    credit COGS-shrinkage

     

    For desktop qb:  See this post. This is the info from it:

     

    Determine the cost of the sample. Do not consider the retail value of the sample; just figure out how much it cost you. If you have given a customer one widget from a box of 10 widgets and your cost for the box is $10.00, the cost of the sample is $1.00. If the product is something you have manufactured, you need to know the cost of the raw materials used to make the sample. Do not include the value of your time spent manufacturing it.

     

    Create a cost of goods sold account named "Samples." Click on "Company" and choose "Chart of Accounts." At the bottom of the screen choose "New" from the "Account" drop-down menu. Choose "Other Account Types" and choose "Cost of Goods Sold" from the drop-down menu. Click "Continue" and name the account "Samples" on the next screen. Give the account a description, if desired. Click "Save & Close" when you are finished.

     

    Create a journal entry. Go to "Company," "Make General Journal Entries" and enter the date you gave out the sample for the entry date. Debit "Samples" for the cost of the sample and credit "Inventory" for the same amount. Use the Memo column to describe the transaction. A proper description would be "To record cost of sample given to customer." You may want to use the customer name, if available, in the description.

    Click "Save & Close" when you are done.

     

     

    dpic44
    June 27, 2022

    What if you need a packing list for the client and a pick list for the warehouse?  I create a sales order, leave the price as is and then add a discount to zero out the invoice.  I'm now wondering how this affects the Profit & Loss Statement and COGS.

    QuickBooks Team
    June 27, 2022

    Hello there, @dpic44.

     

    Let me share some details about the cost of goods sold.

     

    The COGS is only affected when you sell inventory items on invoices or sales receipts. That is the reason why the Profit and Loss by Tag Group report don't calculate it.

     

    For in-depth information, please refer to these article:

     

     

    Please know that you can always get back to us if you have other questions. We're always here to help.

    dpic44
    June 29, 2022

    Thank you!  I'll take look at the links you provided.