Loaning to or Borrowing from an Individual
Issuing an invoice for adding or removing items from inventory is recommended for precise tax records when loaning products. This practice ensures accurate tracking and accounting of each item, regardless of payment, balance, or credit arrangements.
Note: We do not recommend editing existing invoices to keep a running total; instead, we recommend creating a new invoice for each transaction.
If you haven't already, create a Contact Profile for the individual. If the contact is someone you give a wholesale trade discount, after creating their profile, set their default discount before continuing.
Tip: Create a Custom Discount Type if you'd like the discount to be specially labeled on the invoice.
To ensure accurate records are kept, create a new invoice each time a product is removed from or added to your inventory.
- Create a New Invoice with the current date and add items to the invoice (if you do not want the sales information included in the Gross Receipts or Sales Summary by Date reports, select the Bill To option for the invoice Sale type).
- If an item is removed from your inventory, keep the Type of sale set as Sale.
- If an item is being added to your inventory, change the Type of sale to Return Inventory.
- If there is a price variance, the New Balance will carry forward to the next new invoice that is created. If you do not want to carry a balance or credit, enter the amount in the applicable payment field (Cash/Check or Credit Card), and add a short note in the Memo field (E.g., Paid Marney the difference - Ch#1234).
- Select if you'd like to Print or Email the invoice, then click
when finished.
Tip: If you are paying the other individual for the price variance, create an expense entry for the amount you are paying.