There are a couple of different options to properly track section 1 retail items* given as gifts on the invoice. You can either leave the type as a Sale with an offsetting 100% discount (recommended) or change the type to Gift if it is a supply (also referred to a Section 2 or customer premium). By leaving the type as a Sale, the printed invoice will display the value of the item being given and the discount amount will also be included on the Gross Receipts Report (Personal Sales) for year-end 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 .
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.
- For each item added to the invoice, ensure the Discount% field reflects the typical wholesale discount you receive when purchasing product from the company.
- Add a short note to the Memo field for additional information, if desired.
- Mark the invoice paid by selecting to the right 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 .
† 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 individual expenses and income for your tax situation.
* When adding section 2 items, the sale type will automatically default to Gift or Sample. Section 2 items are accounted for on the Inventory Purchases tax report.