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February 10, 2023
Question

Inventory write off for use in Salon

  • February 10, 2023
  • 3 replies
  • 24 views

I am doing the books for a Salon. How do I write off the products that are used in the salon? We pull them from inventory. I am only using QB simple start. I do not use Inventory through QB. I have another program that keeps track of that. 

3 replies

Moderator
February 11, 2023

It's good to see you here in the Community, @Salon225.

 

I'm here to help write off used inventory in the salon in QuickBooks Online (QBO).

 

Just to clarify, are you referring to the damaged items? If yes, you can check out this related post: https://quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/how-do-i-track-damaged-inventory-loss-or-company-use-items/00/202569. The steps are for QuickBooks Desktop, however, you can follow the same process in QBO.

 

However, if the items aren't damaged, this article will guide you through the process of writing off inventory items: Write off inventory items given as promotional samples.

 

Most importantly, I recommend seeking help from your accountant. This way, they can guide you on which appropriate account to use. If you don't have an accountant, you can find one through this link: Find an Accountant.

 

You may be interested in tracking your inventory products in QBO. You can upgrade your QBO to the Plus version.

 

Come back to this post if you have other concerns or follow-up questions about this. I'll be right here to help.

Salon225Author
February 11, 2023

The products are not damaged. At the Salon we Sell products on the shelf and we also use some of the products on clients. My Question is how do you write off the products or move them to an expense category for the products you pull off the shelf to use in your service?

Level 9
February 11, 2023

I appreciate you for coming back to the thread to add extra clarification about your concern, Salon225. With this, I'll ensure you can write off the products or move them to an expense category for the products you pull off the shelf to use in your service.

 

To start with, you'll have to create an expense account to track. Please follow the steps below:

 

  1. Click the Gear icon ⚙.
  2. Choose Chart of Accounts. Then, click New.
  3. For Account type, select Expenses.
  4. In Detail type, select the correct category.
  5. Fill in the other necessary field.
  6. Click Save and close.

 

Once done, I suggest creating an invoice for the item.

 

Here's how:

 

  1. Click + New.
  2. Select Invoice and complete the fields.
  3. Select Save and close.
  • Creating an invoice will reduce the item count in your inventory.
  • Under Description and Memo, explain the action (ex. to write off Promotional Sample Invoice #).

 

After that, you can run a Profit and Loss report on an Accrual basis to use in the next process. You can open this article to see the steps on how to perform the process: Write off inventory items given as promotional samples. This also provides instructions on how to finish the procedure in write off inventory items.

 

Lastly, you may refer to this article on how to reorder anything that’s running low or out of stock: Write off inventory items given as promotional samples.

 

Don't hesitate to click the Reply button below if you have other concerns related to QuickBooks inventory. I'm always around to help, Salon225. Have a great day!