How can I account for Product Samples taken out of inventory?

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  • Updated 7 months ago
  • (Edited)

I sell a range of cosmetics and sometimes we need to pull a single item off the shelf and book it out to use as a product sample.

EXAMPLE:
- My business purchases 10 tubs of hand cream
- 1 tub I use within my business as a sampler, which leaves 9 on the shelf

Should I create an invoice to my business at $0 as the business has already paid for the item? or at cost price? What's the normal method in doing this please?

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Steve

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Posted 7 months ago

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Steve

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I have heard of another business who invoice their own business at cost price, however I'm not sure how payment would be made, seeing as the business has already paid the supplier for the item... Any ideas please?

(Edited)