What's the proper way to set up promotional items?

Discussion in 'Quickbooks' started by David ~, Mar 12, 2005.

  1. David ~

    David ~ Guest

    The products that I distribute, I also give away as promotional items,
    prizes at a competitions, "gifts" etc.... Most of these giveaways are
    provided by the manufacturer, but some of them will sooner or later come out
    of my pocket as well. When provided by the manufacturer, there is no cost
    assigned to me. If I provide the giveaway, then there is a cost.

    I currently have several products already set up as an Inventory Part under
    the type field in the items list and the Income Acount is set up as Sales.
    I then duplicated a few of these product entries, maintained the cost
    associated with them, but did not enter a sales price. These duplicate
    items are catagorized with an Income Account I set up as an expense called
    Promotional Items

    Is this the proper way to set up promotional items ? One one hand it seems
    that I should have just one item for that product in the list, then identify
    it as a sale or a promotional item, when I create invoices, but it doesn't
    seem that's the right way to treat it when I'm creating an inventory (item)
    receipt, especially when it come's in at no cost to me...

    Then there's going to be other giveaways such as T-shirts and other trinkets
    that I'll be buying from other vendors, but I don't think I'm as concerned
    in setting those up as I am with the products above.

    Any advice?


    David ~, Mar 12, 2005
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  2. David ~

    HeyBub Guest

    One expense entry: Advertising.

    You don't need (nor want) inventory. You don't sell these things, even at
    zero. From an accounting standpoint, there's no difference between paying
    for a customized T-shirt and a newspaper ad.
    HeyBub, Mar 12, 2005
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  3. David ~

    Tee Guest

    The way I do it for a retail client, s-corp, who carries everything as
    inventory is:

    Discount Item called Promotion tied to an Income Account called

    Promotional item is entered as normal. Next line down comes the Discount
    item called Promotions (there are similar items called Charitable
    Contributions, Door Prizes, etc) entered with the same prices as the item.
    This zeroes out the the invoice, places the negative, or loss, under income
    in a sub-account, and the accountant can do as he/she wishes with it at
    year-end. Generally it goes to advertising via a journal entry but not
    Tee, Mar 12, 2005
  4. David ~

    Allan Martin Guest

    You can but it really is not required. When you give away an item that you
    normally stock, simply Adjust the Quantity/Value on Hand of the item and
    post the adjustment to a promotion expense account of your choosing. Many
    companies give away numerious items and it would become a real pain it they
    have to keep duplicate item entries for each.

    The true solution is having the ability to change the account number of the
    cost of goods sold account on the fly when issuing a zero invoice for
    promotional items. Mid-range accounting products like Accpac Advantage have
    this feature.

    One one hand it seems
    Allan Martin, Mar 12, 2005
  5. David ~


    Oct 27, 2017
    Likes Received:
    What all do you have as promotional items? I want to buy for my employees.
    zaira143, Oct 27, 2017
  6. David ~


    Oct 27, 2017
    Likes Received:
    guys waiting for your reply
    zaira143, Oct 28, 2017
  7. David ~

    AGH the CPA

    Jun 16, 2017
    Likes Received:
    seeing as how the original poster posted back in 2005, I'm guessing youre not going to get a reply....
    AGH the CPA, Oct 30, 2017
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