Loaning to or Borrowing from an Individual
To keep accurate records for tax purposes when loaning products to an individual, we recommend creating an invoice to add or remove items from your on-hand inventory. By handling each transaction in this manner, your inventory will remain accurate with each product tracked and accounted for, whether you or the other individual is paying for it or leaving a balance or credit on account.
Note: We do not recommend editing existing invoices to keep a running total, but instead, create a new invoice for each transaction.
If you haven't already, create a Contact Profile for the individual. If the contact is someone that 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 product is being removed from or added to your inventory.
- Create a New Invoice with the current date and add items to the invoice.
- If an item is being 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.