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Entering a Trade-in Without using an Inventory Adjustment

Some companies receive used items (for example: machines, vehicles, computers,etc.) from customers in exchange for credit against the purchase of a new item. The company then returns the used item to their vendor or refurbishes the used item for resale. If the company resells the used item, they may need to create an item for it on their item list.
Solution Description
  1. From the Lists menu, select Chart of Accounts.
  2. Create a new bank account named Trade In.
  3. From the Banking menu, select Write Checks
  4. Enter identifying information:
    1. Select the Trade In bank account.
    2. Clear the To be printed check-box.
    3. Replace the check number with the words Trade In.
    4. In the Pay to the order of field, enter the customer's name.
       
  5. On the Items tab, enter the trade-in items:
    1. Enter the item that is being accepted for trade-in. Create this item with the Add New option, if necessary.
    2. In the Qty column, enter the number of trade-in items of this type.
    3. In the Cost column, enter the trade-in value of the item.
       
  6. On the Expenses tab:
    1. In the Account column, select the appropriate account to track trade-in credits .
    2. In the Amount column, enter the negative amount of the Items tab (for example, if the Items tab total is $500, enter -500 in the Amount column of the Expenses tab).
    3. In the Memo field, enter any trade-in information that should show on the customer's invoice.
    4. In the Customer:Job column, select the trade-in customer to make the negative amount billable.
       
  7. Save the check.
  8. On an Invoice that uses the trade-in credit:
    1. Enter the new item being purchased on the first line.
    2. Open the Time/Costs window.
    3. On the Expenses tab of the Time/Costs window, check the trade-in transaction.
    4. Click OK.
       

The invoice now shows the total of the new purchase with a discount amount equal to the trade-in value of the previous item. This trade-in item is now in the Item List and is available for later sale.

KB ID# HOW12903
12/10/2016 8:09:55 PM
QYPPRDQBKSWS09 9138 Pro 2017 8a29de