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Inventory change overs

An inventory change over is when a customer hands over an old item in exchange for a new or reconditioned item. The old item is then reconditioned to a saleable condition and transferred back into your inventory.

To record inventory change overs, there's a couple of things that need setting up. You'll then be able to record the sale of the reconditioned item, including any discounts offered with the exchange, and record the receipt of the customer's change over item.

Here's an example:

ExampleXYZ Heating runs a heater repair business. As part of their change over service, if a customer hands in an old heater core in exchange for a new or reconditioned heater core, a $20 discount is given. The exchanged heater core is then reconditioned and resold.

Regardless of your business' specifics, these steps and principles in inventory change over will work for you.

Before you begin

To make sure everything runs smoothly for the change over, you'll need to create two new accounts and an inventory item.

Here are the details:

Recording an inventory change over

OK, you're now ready to record the change over.

First, you'll record the sale of the reconditioned item to the customer. Next, you'll record the purchase of the customer's change over item.

Finally, when the change over item has been repaired to a saleable state, we'll show you how to move the item back into your inventory.