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Old 01-06-2002, 11:34 PM
jdupre jdupre is offline
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Join Date: Dec 2001
Posts: 17
Question How to account for "free samples"?

I run a small record company, and we have to give away a substantial amount of inventory as free promotional items.

What is the best way to account for this in QB Pro 2001?

Obviously I need to track the depletion of stock, but I'd also like to track the cost of the free samples as an expense, as well as who the free samples were given to.

If I just do an inventory adjustment, there is no way to internally track who the samples were sent to.

I guess I could enter in the $0.00 sale of promotional items as a sales reciept, but that seems wrong.

Does anyone else track the expence of free samples of inventory items? How do you do it?


- Joe
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Old 01-11-2002, 11:30 AM
crlrnsol crlrnsol is offline
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Join Date: Oct 2001
Location: Shamong, NJ
Posts: 6
Don't know if this is the correct way to do this, but couldn't you create a "Free Sample" item with a discount of 100%. Then when you give free samples, create invoices for the records given away and add the free sample item. This should give you a net cost of 0.00 and let you track them like any other sale.
Roger Bateman
Creative Learning Solutions, LLC
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Old 01-11-2002, 12:31 PM
jdupre jdupre is offline
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Join Date: Dec 2001
Posts: 17
How to account for "free samples"?


I'll have to try that. It seems like the way to go.

- joe
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Old 01-13-2002, 03:42 AM
gibbo gibbo is offline
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Join Date: Oct 2001
Location: Australia
Posts: 1,595
If you are using inventory items to track stock, you cannot use another item to sell it. This will not reduce your inventory of the particular item.
Create a "Discount" item called "Promotional" or similar, with an amount of 100% and linked to the same sales account as the inventory items.
On the invoice, enter the items as if they were sold, with a second line - with the Promotion discount item. This will reduce the invoice to nil.
The item inventory will then be reduced correctly, the cost of goods sold goes up correctly and there is no income.
While it does not show as an expense, the cost of the promotional give-aways can be found by using the Sales by Item Summary.
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