Handle Gifts Given Away

To properly track retail items* (section 1) given as gifts, you can choose from a couple of options depending on whether the recipient is known when the gift is given away.

Option 1: The recipient was known at the time given

Option A: If you keep the Type set as Sale and apply a 100% discount by putting 100 in the Disc% field, the printed invoice will show the value of the item you're giving away. You'll also see the retail amount in the Gross Receipts report under Retail Subtotal, with the same offsetting amount listed under Discounts, which will lower the Net Total.

Option B: Using the Gift sale type for retail items (section 1) will not include the retail amount of the item in the Retail Subtotal or Net Total on the Gross Receipts report. The Gift sale type was initially intended for supplies (section 2) being given as a gift with purchase (i.e., Deluxe Minis or other section 2 ). However, when it is used for retail items, the retail amount will be included as Retail Gifts Given under the Discounts section on the Gross Receipts report.

1. Create an invoice adding the items being given away.
2. Set the sale Type as Sale with a 100% discount (Option A), or as Gift (Option B). 
3. Add any other items and payment to finish the invoice, then click .

Option 2: The recipient was not known at the time it was given

Refer to the article Handle Demos, Donations, or Expired/Product Loss for detailed instructions on how to manage situations where your business is giving away retail products for events like a raffle or a gift basket created by multiple consultants when the intended recipient is unknown. If the items are being donated to a charity, the process for handling the invoice is also similar.

1. Create an invoice under your Business Supplies profile with the invoice Sale type as Business Supplies. 
2. For each item added to the invoice, ensure the Discount% field reflects the typical wholesale discount you receive when purchasing from the company.
3. Add a short note to the Memo field for additional information, if desired.
4. Mark the invoice paid by selecting  to the right of the Cash/Check field.
5. Select the Discount tab and under the Discount Type section, ensure the discount type is set to Business Supplies.
6. From the Expense Category drop-down options, select the appropriate tax category†. 
7. When finished, click .

†  Main Street can only provide general suggestions, not tax advice. Please consult your tax professional regarding your specific situation.

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Additional Information:

* 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.

• Handling Sales Tax on Discounted Items