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QuickBooks Team
QuickBooks Team
‎March 09, 2022 01:51 AM

Other Questions

Let me help you with this one, carolynlarms.

 

We can write off the stock or items by creating an inventory adjustment. Just follow the steps and details in this article: Adjust inventory quantity on hand in QuickBooks Online. We can also write off inventory items. I'd suggest consulting your accountant before making this entry if the amount you're writing off will significantly affect your gross sales amount. Then, make sure that you have the same date for all of them when creating these transactions. 

 

Here's how to create an expense account to track:

  1. Go to the Gear icon on the top menu. 
  2. Select Chart of Accounts.
  3. Tap New.
  4. For Account type, select Expenses.
  5. For Detail type, select Advertising/Promotional.
  6. Enter the name.
  7. Press Save and close.

 

Then, create an invoice for the item:

  1. Click the + New Plus icon.
  2. Select Invoice and complete the fields.
  3. Press Save and close.

 

Creating an invoice will reduce the item count in your inventory. Then, create a journal entry to remove the Income, credits the customer in Accounts Receivable, and credits Cost of Goods to record the Expense. Here's how: 

  1. Click the + New Plus icon.
  2. Select Journal Entry.
  3. Enter the date.
  4. Under Account, select Sales of Product Income.
  5. Under Debits, enter the amount you are writing off.

 

On the second Line:

  1. Under Account, select Cost of sales.
  2. Under Credits, enter the amount that the Cost of Goods are for this product.
  3. The Memo field should auto-populate.
  4. Under Name, select the customer name.

On the third Line:

  1. Under Account, select Accounts Receivable.
  2. Under Credits, enter the same amount as the write-off.
  3. The Memo field should auto-populate.
  4. Under Name, select the customer name.

On the fourth Line:

  1. Under Account, select Samples.
  2. The Debits amount should auto-populate.
  3. The Memo field should auto-populate.
  4. Under Name, select the customer name.
  5. Select Save.

 

Then, apply the credit note, Just follow the steps and details in this article: Create and apply credit notes or delayed credits in QuickBooks Online. Feel free to visit our Account management page for more insights about managing your Intuit product users.

 

I'd like to know how you get on after doing these steps as I want to ensure this is resolved for you. Just reply to this post and I'll get back to you. Have a great day. 

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