Software: Intuit #QuickBooks #accounting software
Businesses, especially when launching a new product, may give away product sample as a form of marketing.
Although you are not selling a product, to correctly capture the cost of goods sold and the inventory on hand, a sales invoice transaction is used to record the delivery of the product sample. In the sales invoice transaction, record the quantity delivered and leave the selling price as 0.00. Since the sales invoice has a gross of 0.00, there will not have any outstanding receivable in this case. The product sample has a cost, which will transfer from the inventory assets account to the cost of goods sold account when a sales invoice has recorded.
You may consider using an inventory adjustment to derive the similar result, but using a Sales Invoice or a Sales Receipt is a better choice as you can print a “delivery note” directly from the QuickBooks (Customise a “Delivery Note” form from an invoice template).
The Inventory Valuation Detail report provides a detail of who and when you sent the sample, and prints a full movement of the item.
Although you may manage a simple account manually or with a spreadsheet, an accounting software such as QuickBooks helps improve the productivity and provide the non-accounting trained management staff with useful information such as the stock status and customer buying history instantly.
Sign-up a demo (Singapore only), if you do not have a system or intend to change an accounting software, to have an understanding of how QuickBooks can help in your business.