Author Topic: QuickBooks  (Read 3548 times)

Offline dpk4588

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Re: QuickBooks
« Reply #60 on: October 10, 2017, 10:06:44 PM »
I have a vendor, that when I purchase $X of inventory, gives me $Y in credit towards future purchases.

How do I record that credit in quickbooks? I feel like I should show it as another current asset but I'm not sure what the offset is. If I offset purchases is messes with my COGS, but I'm not sure how else to do it. Any suggestions?
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Offline churnbabychurn

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Re: QuickBooks
« Reply #61 on: October 14, 2017, 10:25:20 PM »
I have a vendor, that when I purchase $X of inventory, gives me $Y in credit towards future purchases.

How do I record that credit in quickbooks? I feel like I should show it as another current asset but I'm not sure what the offset is. If I offset purchases is messes with my COGS, but I'm not sure how else to do it. Any suggestions?


It's has to reduce cogs eventually though no? How do you record the next purchase?

Offline dpk4588

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Re: QuickBooks
« Reply #62 on: October 14, 2017, 10:28:14 PM »
Eventually, once I've sold all the inventory purchased with the credit, COGS would be right, but until then it's off.
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Offline churnbabychurn

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Re: QuickBooks
« Reply #63 on: October 14, 2017, 11:30:25 PM »
Eventually, once I've sold all the inventory purchased with the credit, COGS would be right, but until then it's off.
Technically an aurgument can be made that the credit should be applied to the current order. If you are recording it as an asset, the cost of the inventory currently received would be reduced..

Offline dpk4588

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Re: QuickBooks
« Reply #64 on: October 14, 2017, 11:44:19 PM »
Technically an aurgument can be made that the credit should be applied to the current order. If you are recording it as an asset, the cost of the inventory currently received would be reduced..
The vendor specifically says I can't use the credit to offset the regular purchases. I'm basically creating a cash account called "Vendor Credit" and I'll use that "cash" to make future purchases from that vendor. I guess I have to offset purchases, and if I have credit left when the year ends I'll have to make an adjustment to purchases, to reflect the actual purchases.
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Offline Mordyk

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Re: QuickBooks
« Reply #65 on: October 15, 2017, 12:33:22 AM »
The vendor specifically says I can't use the credit to offset the regular purchases. I'm basically creating a cash account called "Vendor Credit" and I'll use that "cash" to make future purchases from that vendor. I guess I have to offset purchases, and if I have credit left when the year ends I'll have to make an adjustment to purchases, to reflect the actual purchases.
It should still be considered a vendor credit which reduces cogs.  I would say make a vendore credit and dont apply the credits. Until when you make a specific purchase that gets covered by all avail credits