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Track trade-in cars as inventory

The article outlines the steps in recording and tracking trade-in cars as inventory.

Solution description

To record trade-in cars as inventory:

  1. Set up a new bank account.
    1. From the Lists menu, select Chart of Accounts.
    2. On the Chart of Accounts window, click Account then choose New.
    3. Choose Bank for the account type and Trade-ins for the account name.
    4. Click Save & Close.
  2. Set up a new item.
    1. From the Lists menu, click Item List.
    2. On the Item List window, click Item then choose New.
    3. Choose Payment for the item type then use Trade-in for the item name.
    4. Select the Deposit To radio button and from the drop-down, select the Trade-ins bank account.
    5. Click Ok.
  3. Create a new vendor.
    1. From the Vendors menu, select Vendor Center.
    2. On the Vendor Center window, right click the vendor list then select New Vendor.
    3. On the New Vendor window, use Customer Trade-ins for the name then click OK.

 

When a car is sold from inventory and a trade-in is accepted as partial payment on this sale:

  1. Create an invoice.
    1. From the Customers menu, select Create Invoices.
    2. On the Create Invoices window, click the first line in the Item column then enter the name of the car you are selling.
      Note: If the car is not in the Item list, you will be prompted to set it up.
    3. On the next line in the Item column, select the Trade-in payment or discount item then in the Amount column, enter the amount of the trade-in allowance.
    4. Click Save & Close.
  2. Create a new inventory item for the car you accepted as a trade-in.
    1. From the Lists menu, click Item List.
    2. On the Item List window, click Item then choose New.
    3. From the Account type drop-down, choose Inventory Part.
    4. From the Income Account drop-down, select the income account you use for recording the sales of trade-ins.
    5. Leave the Cost and Qty on Hand at zero.
    6. Click OK.
  3. Enter a bill.
    1. From the Vendors menu, select Enter Bills.
    2. On the Enter Bills window, click the Vendor drop-down and select Customer Trade-ins.
    3. In the Item column, select the inventory item created.
    4. Click the Amount column then enter the amount of the trade-in's value.
    5. Click Save & Close.
  4. Pay the bill.
    1. From the Vendors menu, select Pay Bills.
    2. On the Pay Bills window, select the bill created in Step 3.
    3. From the Account drop-down, choose the Trade-ins bank account.
    4. Make sure the To be printed radio button is NOT selected.
    5. Click Pay Selected Bills.

Note: Once you have completed the above steps, the Trade-ins bank account net is zero, the car accepted as trade-in is now in inventory, and the value of the trade-in is in the inventory asset account.
KB ID# HOW13274
12/5/2016 2:29:07 AM
QYPPRDQBKSWS05 9138 Pro 2017 d01c71