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What is the best way to account for product samples expense in QB Enterprise?

What is the best way to process and account for Product Samples in QB Enterprise? I currently create a $0 invoice to a customer named "SAMPLES" and this takes the item out of inventory and this correctly does not affect my sales for the period. However, it does overstate my COGS. I figured I could just use the Reclassify Transactions tool under Company but that does not allow you to reclassify the account of item-based transactions. I guess I will great a General Journal entry to correct the COGS for the periods that need to be corrected, but how can I avoid this in the future. I need the item to be credit from Inventory and the debit to Samples Expense.
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Best answer 12-10-2018

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ProAdvisor

I'd create a few accounts. A Parent account for Product S...

I'd create a few accounts. A Parent account for Product Samples. Then make you sample account a subaccount  for Product Samples. Then create a Freight on Samples account & make that a subaccount  of Product Samples. Then you would know what your samples are actually costing the company.
8 Comments
ProAdvisor

I'd create a few accounts. A Parent account for Product S...

I'd create a few accounts. A Parent account for Product Samples. Then make you sample account a subaccount  for Product Samples. Then create a Freight on Samples account & make that a subaccount  of Product Samples. Then you would know what your samples are actually costing the company.
Experienced Member

would that be an Expense account?

would that be an Expense account?
ProAdvisor

It's just a different way of handling it. Just providing...

It's just a different way of handling it. Just providing a different option & a way without running an items report on finding out how much samples are costing since a P&L is most likely going to be run.

Also, if you do it in the chart of accounts you can budget on both accounts which you can't do with using items.
Established Community Backer ***

Don't use Journal entries for anything to do with Invento...

Don't use Journal entries for anything to do with Inventory.

The sales Is impacting your data.

I would use Adjust Inventory, and the offset account can be Advertising and Promotion.

Not applicable

@qbteachmt Thanks. This does solve the issue with putting...

@qbteachmt Thanks. This does solve the issue with putting the sample product into COGS, but what about tracking the related freight charges that we pay to send the samples to the folks? Should I enter a Bill and use an Item called "Freight" and then assign that cost as a non-billable charge to the final person we are sending the sample to?
Established Community Backer ***

If you use Items, you can link them to the one account. Y...

If you use Items, you can link them to the one account. You can still run reports on Items, to avoid micro-managing the chart of accounts.

Established Community Backer ***

"but what about tracking the related freight charges that...

"but what about tracking the related freight charges that we pay to send the samples to the folks? Should I enter a Bill"

You enter a bill because you owe for something you don't intend to pay until a later date. Otherwise, you put the charge on the Credit card charge, or a Check entry.

"and use an Item called "Freight" and then assign that cost as a non-billable charge to the final person we are sending the sample to?"

I sure would.


Frequent Explorer *

Re: I'd create a few accounts. A Parent account for Product S...

Ray, I can see where if you set up an item called "sample freight" and added that to the SAMPLES Invoice you can dictate on the item which expense account those expenses should go to, but do you still need to make the JE to reclassify the Sample COGS into the Samples marketing expenses account?