How to adjust Extra items received & sent

I ordered let’s say 100 items & I received 110 items from the supplier. The extra items delivered have no cost. I delivered 105 items to the customer, I gave 5 extra for which I didn’t charge. The remaining 5 items are kept in-stock inventory.

Now I see extra items delivered in the customer tab as ‘qty to invoice’. How do I correctly record the above?

You will have a add a line to the invoice with 5 free items

@decentboy008, do not overthink this. You did not say whether you issued a purchase order for these items or created a sales order when the customer ordered them, but it really does not matter financially, because orders have no financial impact. The simple fact is you received 110 items, regardless of how many you ordered. (Under- and over-delivery are common in many industries.)

What does matter is whether you are using delivery notes. If you are, and you recorded delivery of 105 units, but invoiced for only 100, that creates the situation of a quantity still to be invoiced.

So, enter a purchase invoice for 110 units. It does not matter whether you enter 100 at the unit purchase price and 10 for zero or 110 for the price of the 100. The end result in your Inventory on hand account will be the same. The average cost of items on hand will be the same.

You sold 105 units to your customer. Whether you enter a sales invoice for 100 units at your normal price and 5 units for free or 105 units at the price for 100 also does not matter. All 105 units will be removed from inventory at the average cost established by your purchase of them. This is a matter of choice. How do you want to present the sale to the customer? Do you want the customer to think you delivered more than promised at the quoted price? Or do you want to specifically show that you gave 5 free units?

Whatever you do on purchase or sales invoices, you must show the number of units actually bought and sold. Otherwise, you end up with the unexplained units still to be invoiced (presumably because you recorded them on a delivery note).