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cindymac1011
July 5, 2022
Question

Promotional Items

  • July 5, 2022
  • 11 replies
  • 49 views

Hello. I use QB Desktop. I do not track inventory in QB, but on my website. We recently had an event and gave away T-shirts, hats, and totes. I have no idea to whom we gave these items. I have created an account for promotions/giveaways (an expense account). I am wondering what my journal entry should be to account for these items. Thank you so much for your help.

11 replies

C
Charies_M
Level 9
July 6, 2022

I got the help you need, cindymac1011.

 

You're in the right track for creating an expense account for your promotions/giveaways. For the Journal Entry part, here's how you do it:

 

  1. Go to the Accountant menu.
  2. Choose Make General Journal Entries.
  3. Fill in the necessary information.
  4. Click Save & Close.

You can refer to the information below on what accounts to use. However, I'd still suggest reaching out to your accountant for an expert advice in dealing with this situation.

 

On the first Line:

  1. Under Account, select Sales of Product Income.
  2. Under Debits, enter the amount you are writing off.
  3. Under Description and Memo, type something like "To write off Promotional Sample Invoice # - [insert client name]".

On the second Line:

  1. Under Account, select Cost of Goods Sold.
  2. Under Credits, enter the amount that the Cost of Goods are for this product.
  3. The Memo field should auto-populate.
  4. Under Name, select the customer name.

On the third Line:

  1. Under Account, select Accounts Receivable.
  2. Under Credits, enter the same amount as the write-off.
  3. The Memo field should auto-populate.
  4. Under Name, select the customer name.

On the fourth Line:

  1. Under Account, select Promotional/Samples.
  2. The Debits amount should auto-populate.
  3. The Memo field should auto-populate.
  4. Under Name, select the customer name.
  5. Select Save.

Here's a good reference to learn more about creating a journal entry in QuickBooks Desktop.

 

If you wish to review the entries, you can do so by going to the bottom pane of the Make General Journal Entries window.

 

By default, only entries from the last month are displayed. To change or expand the list of entries, click from the List of Selected General Journal Entries drop-down list and select which period.

Check out these articles for more details about how inventory works in QuickBooks:

For tips on how to handle promotions or giveaways in QBDT, here's an article that you can read: 

 

Don't hesitate to let me know if there's anything else you need help with managing inventory. I'm here to help anytime.

B
beth1026
October 16, 2023

Intuit suggested that this string would be helpful to me, but i do track inventory.

I am looking for a way to track inventory parts that we send out for recalibration. 

Right now we use an invoice/packing slip to send the parts and a zero dollar PO to bring them back in. The problem with this is the cost is expensed when we ship the parts and the new cost becomes $0.00 when we bring them back in.  

How can I accomplish this without changing the cost?

Rainflurry
Rainflurry
Level 11
October 16, 2023

Desktop Enterprise


@beth1026 

 

Have you tried just using an inventory adjustment when the item is sent to the calibration company?  That sounds like the easiest way IMO.  First, set up a separate Other Current Asset account called 'Inventory Out for Calibration' or something similar and transfer the cost of the item to that account when you send it to the calibration company using 'Adjust Quantity/Value on Hand'.  Choose 'Quantity' as the Adjustment Type and 'Inventory Out for Calibration' as the Adjustment Account.  Enter the New Quantity after sending the item(s) out.  That will remove the item(s) from inventory and assign the value to the Inventory Out for Calibration account.  When you receive the item(s) back, enter the New Quantity and choose the same Inventory Out for Calibration account under Adjustment Account.  That will zero out the Inventory Out for Calibration account and put the item(s) and its cost back into inventory.

 

Not sure if this is what you're asking but, if you want/need to add the cost of calibration to the item's cost, use the landed cost functionality of Enterprise.  That way, you can assign the cost of the calibration entered on a bill to the specific item that was calibrated.  If the calibration cost is immaterial to your overall inventory, then just enter a bill for the calibration expense and pay it.  

  

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