There are a couple of different options to properly track retail (section 1) items* given as gifts on the customer's invoice. You can either leave the type as a Sale with an offsetting 100% discount. By leaving the type as a Sale, the printed invoice will display the value of the item being given. We do not recommend using the Gift sale type for section 1 items as it will then no longer be included in your retail sales amounts for tax purposes.
- Create an invoice adding the items being given away.
- Set the sale Type as Sale with a 100% discount.
- Add any other items and payment if necessary to finish the invoice, then click OK .
* When adding section 2 items, the sale type will automatically default to Gift or Sample. Section 2 items are accounted for on the Product Purchases tax report.
Gifts Given to Unknown Recipients:
If the intended recipient is unknown when your business is giving the product away for events such as a raffle or gift basket that has been created from multiple consultants, etc. it is handled differently.
- Create an invoice under your Business Supplies profile with the invoice Sale type as Business Supplies.
- Mark the invoice paid by selecting to the left of the Cash/Check field.
- Select the Discount tab, and under the Discount Type section, ensure the discount type is set to Business Supplies.
- From the Expense Category drop-down options, select the appropriate tax category**.
- When finished, click OK .
- Supplies (COG): Items used as section 1 demonstrators
- Gifts: Items for an event not tied to a specific recipient
- Advertising: Items used as a giveaway to obtain leads
- Charity: Items donated to a shelter or other charitable organization
- Expired/Lost: Product that is past its prime, and being thrown out (to view a list of expiring items, go to the Business Tools menu, select Reports. Under the Inventory section view the Expiring Product Listing report). Another use for this category would be products lost or damaged in shipment to a customer.
** Main Street cannot give tax advice, only general suggestions, and how to enter items into the Expense area in Boulevard. Please seek advice from your tax professional on how to handle personal expenses and income for your tax situation.