estimates and inventory question


K

Karen

Hi all,

I was advised by the accountant to record "sales" to a particular
customer as "estimates" as they are essentially consignment type items.
They are CD's that are not paid for by the distributor until sold. I
also voided the invoice as per instructions. What I've just noticed is
that the inventory is not effected when the estimate is created but
inventory is *increased* when the invoice is voided (which was to be
expected.

Is there any way to deplete the inventory other than doing this
manually? Typically the CD's are never returned and those that are not
sold, distributed or discarded by the distributor through another
business venue. Unfortunately I'm not aware of how they go about this.

Thanks,

Karen
 
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B

Bob Williams

Hi all,

I was advised by the accountant to record "sales" to a particular
customer as "estimates" as they are essentially consignment type items.
They are CD's that are not paid for by the distributor until sold. I
also voided the invoice as per instructions. What I've just noticed is
that the inventory is not effected when the estimate is created but
inventory is *increased* when the invoice is voided (which was to be
expected.

Is there any way to deplete the inventory other than doing this
manually? Typically the CD's are never returned and those that are not
sold, distributed or discarded by the distributor through another
business venue. Unfortunately I'm not aware of how they go about this.

Thanks,

Karen
Karen

You have removed the CDs from stock and in effect made a "sale" albeit
at $0.

Issue them as an invoice for $0. You can always credit them back if
they are returned or sold (at this point you would create a new
invoice with a price).

An estimate is non-posting and does not affect inventory. It will not
record anything - it is really a quotation to be given to a customer
who may or may not proceed with the deal.

Bob Williams
 
K

Karen

Bob said:
Karen

You have removed the CDs from stock and in effect made a "sale" albeit
at $0.

Issue them as an invoice for $0. You can always credit them back if
they are returned or sold (at this point you would create a new
invoice with a price).

An estimate is non-posting and does not affect inventory. It will not
record anything - it is really a quotation to be given to a customer
who may or may not proceed with the deal.

Bob Williams
Bob,

Thanks. You saved me a lot of work as I thought I'd have to modify the
inventory amounts individually. The zero dollar approach will work fine
with the inventory.

Karen
 
M

Mike Block - QuickBooks Tax Cut C.P.A.

Hi all,

I was advised by the accountant to record "sales" to a particular
customer as "estimates" as they are essentially consignment type
items.
They are CD's that are not paid for by the distributor until sold. I
also voided the invoice as per instructions. What I've just noticed is
that the inventory is not effected when the estimate is created but
inventory is *increased* when the invoice is voided (which was to be
expected.

Is there any way to deplete the inventory other than doing this
manually? Typically the CD's are never returned and those that are
not
sold, distributed or discarded by the distributor through another
business venue. Unfortunately I'm not aware of how they go about
this.

Thanks,

Karen


An estimate is non-posting and does not affect inventory. So, it is
not advisable in your case.You can issue an invoice for $0 recording
actual quantity of cds with a different series of Invoice Nos. say
starting from 0001 and when they are reported as sold by your
distributor you can edit the invoice and change the invoice no. as
normal serial no. and also edit the amount giving exact amount, this
will not affect your inventory every time but at the same time help
you to keep a track of invoices which are yet on approval stage by
sorting the invoices in quick reports by numbers.

Mike Block - QuickBooks Tax Cut C.P.A.
Intuit paid me to make QuickBooks better!
http://www.blocktax.com/
http://www.quickbooks-add-ons.com/
 
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K

Karen

Mike said:
Hi all,

I was advised by the accountant to record "sales" to a particular
customer as "estimates" as they are essentially consignment type
items.
They are CD's that are not paid for by the distributor until sold. I
also voided the invoice as per instructions. What I've just noticed is
that the inventory is not effected when the estimate is created but
inventory is *increased* when the invoice is voided (which was to be
expected.

Is there any way to deplete the inventory other than doing this
manually? Typically the CD's are never returned and those that are
not
sold, distributed or discarded by the distributor through another
business venue. Unfortunately I'm not aware of how they go about
this.

Thanks,

Karen


An estimate is non-posting and does not affect inventory. So, it is
not advisable in your case.You can issue an invoice for $0 recording
actual quantity of cds with a different series of Invoice Nos. say
starting from 0001 and when they are reported as sold by your
distributor you can edit the invoice and change the invoice no. as
normal serial no. and also edit the amount giving exact amount, this
will not affect your inventory every time but at the same time help
you to keep a track of invoices which are yet on approval stage by
sorting the invoices in quick reports by numbers.

Mike Block - QuickBooks Tax Cut C.P.A.
Intuit paid me to make QuickBooks better!
http://www.blocktax.com/
http://www.quickbooks-add-ons.com/
Thanks Mike.

I'm going to revise this when I return to work next week. I've been
working on correcting the inventory for over a month now (previously
inventory items were entered as "service" items --- by someone else) so
a lot of re-orging is in order.

Karen
 

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