Demo unit from inventory

Hi,

We have been using some of our inventory items as demo pieces. These demo pieces should be considered company assets that we can sell of at a discount in the future. They should not show up as part of our normal retail inventory.

So how do we transfer something from inventory to a separate account of demo units? This is important as I would like to be able to pull up a report of how much money we have tied up in demo units and it would be nice if I could keep track of when an item was issued from inventory to demo unit status. Thinking of it purely as a mental exercise I am imagining there being a separate inventory for these assets where by we can transfer items to that inventory from our retail sales inventory.

Any ideas how this can be done?

Maybe?

https://guides.manager.io/10707
https://guides.manager.io/11130
Using Inventory location.

In the end of the day if they ask where is the last piece. then you would know the last piece is on display.

Using Inventory location is an option but it wont separate them or as you say “They should not show up as part of our normal retail inventory.”

So you have a couple of options:
1 - you can create a separate Inventory custom control account called “Demo Inventory” made up of Inventory Items, you would then create Inventory items for the demo units and allocate them to the “Demo Inventory”, then you would do a Journal Entry to transfer the Inventory Item (ABC) to the Inventory Item Demo (ABC-D). Now the cost of the demo units would appear under “Demo Inventory”, clicking on that Summary tab balance would provide a listing (report). When you come to sell, just select the Inventory Item (ABC-D) on the Sales Invoice. This is probably the best option.

2 - Creating a Balance Sheet > Asset account “Demo Units” and transfer from Inventory Items by Journal. This wouldn’t provide the same informative reporting, nor ease of selling at the end.

3 - If you are already using the Fixed Assets tab, then similar to (2), transfer the Inventory Item by Journal, but has the same limitations as (2)

1 Like

Hi,

Thank you for your suggestions, I am sorry that I had not responded earlier as I have been very busy these past few days. I need time to digest the suggestions posted till I fully understand them, but on quick perusal, they make sense.

First option will work. I thought is a bit hassle since the demo units is still saleable inventory usually in very high discounted price. Thus, the inventory location. Anyways mote options the better.