Accounting for product donated

AllanAllan Member Posts: 15
We are using accounts premier and want an easy way to account for product that is donated to customers. Currently we list the item on customers invoice then raise a credit note so the customer gets it for no charge. This shows the customer that we have given them the product at no charge.
We the raise another invoice to remove the item out of stock and do a credit to place the cost into an expense account. This is a very cumbersome process, dose anyone have an easier  way.

Comments

  • Malcolm McMasterMalcolm McMaster Member Posts: 17
    edited November 2017
    Can you not just sell thru at zero ? This should record the sale, remove from inventory & record COGS at the buy price.
  • AllanAllan Member Posts: 15
    edited November 2017
    Then how do i get the cost into the expense side
  • Malcolm McMasterMalcolm McMaster Member Posts: 17
    edited November 2017
    HI Allan,
    I must admit I don't use Reckon with inventory, however with various other packages I use (using inventory control) I am able to sell an item at zero sell price. Once the invoice is recorded the audit trail of the transaction would show,
    Debtors Nil
    Sales     Nil
    COGS Debit (Say) $10.00
    Inventory Cr $10.00
    If this is not the case with Reckon, you could just raise a journal to Debit COGS & Credit Inventory.
    But you would need to check that the process will, in fact, deduct the item from inventory & no double up on inventory value credit.
  • WilmaWilma Member Posts: 50
    edited December 2017
    This is the case with Reckon Allan.
    I have a discount type item named Promotions which is linked to a Promotion/Marketing expense Account.  This way I can track
     how much we are giving away
    Cheers
    Wilma

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