How do I invoice a product that is covered by warranty? I need to show that the product was used on a customer invoice.

Thanks for reaching out to the community for your concern, @ksottile.

For me to be able to provide you with an appropriate solution, I'd like to know if you tried to create an invoice for an item with a warranty. Or perhaps a product was returned by a customer within the warranty period. Any additional information will be much appreciated.

I'll be in the comment section for your response and for any other invoice and QuickBooks-related queries you'd like to bring up. Take care.

Good morning,   We have a situation where the customer has to pay for the labor and the vendor is replacing the product which is covered by a warranty.  I would like to show the product on the customer invoice but that removes the product from inventory.  In the meantime we get a bill from the vendor for the new product and then when the bad product is returned we will get a vendor credit for the product.  I need to make sure that the inventory count stays correct and it seems that the way described above is actually throwing off the count by one.  I cannot think of the correct way to handle this.

Thank you for your help and time, Kim

I'd be glad to help you show the product invoices and remove it from inventory in QuickBooks Online (QBO), ksottile. 

First off, let's create a Credit Memo to show the customer's returned item. You can make the same item with the same quantity. Here's how:

1. Select +New on the left panel.
2. Select Refund receipt or Give refund.
3. Scroll down the Customer dropdown, then choose the customer you want to refund.
4. Select the Refund from dropdown, then select the bank you deposited the payment for the invoice to.
5. Add all products or services the customer returned in the Products/Service column.
6. Make sure to fill the date, quantity, rate, amount, sales tax, and other fields accordingly, then select Save and close.

If you want to give a partial refund to a customer, only add the items or amount you want to refund.

Once done, we can now record a Vendor Credit using the same item and quantity to show that it's been returned to the vendor. 

To do this, please follow these steps:

1. Click + New and select Vendor credit or Receive Vendor credit.
2. In the Vendor dropdown, choose your vendor.
3. Enter the Category or item details depending on how you record purchases with this vendor. 
4. Most of the time, this is the category, product, or service you're getting credit for.
5. Once done, click Save and close.

If you're still having a hard time, you can still reach out to your accountant for more alternatives. 

Lastly, I've added this article in case you need assistance recording a credit from a vendor: Enter vendor credits and refunds in QuickBooks Online. 

Feel free to reach us again if you still have queries about invoices and inventory in QBO. We're always here anytime. Stay safe. 

The problem is that I am not trying to refund the customer and a vendor credit cannot be applied to a customer.  I need to show the part coming out of inventory and then being credited in order to keep inventory count correct.  I have not been able to figure out a way that works all around.

Thanks for getting back to us, @ksottile. I'll share other steps that can help you with your invoice.

Since you don't want to refund the customer, you can create a non-inventory item. Set an expense account on the item screen to a discount account (it should be a sales discount income account, but if you already have a discount expense account you may use that). Then, on the customer credit, use that item and enter the amount as a positive

Here's how:

1. Go to Sales, then select Products & services (Take me there).
2. Select New.
3. Choose Non-inventory.
4. Enter the Return item as the name of the product or service. 
5. From the Category ▼ dropdown, select the category that best describes your product or service. Learn more about item categories.
6. When you're done, select Save and Close.

For more details, see this article: Add product and service items to QuickBooks Online.

Additionally, it's important to note that all sales with applied sales tax will also have sales tax applied when the item is returned, regardless of how the credit for the return is utilized.

Upon sharing the steps above, I'd suggest contacting your accountant. They can give you advice on how to handle this kind of situation to ensure your books are accurate.

Let me share these resources that will guide you with your payments and how to personalize your sales forms:

• Void or refund customer payments in QuickBooks Online
• Customize invoices, estimates, and sales receipts in QuickBooks Online

Let me know by leaving a comment if you have further questions about your concern with QuickBooks. I'm always right here to help you anytime. Have a nice day!

Are you still looking for a solution for warranty replacement items and invoicing?

I might be able to help with that.

Terry [Removed]

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