To record a trade-in
To properly record and account for trade-ins in MYOB Premier Accounting, do the following:
- Create a customer card for the customer, and create a vendor card with the same name. (As an alternative, you could create a special vendor card for all of your trade-in purchases. You could give this card a special name like "Trade-In" to clearly identify its purpose.)
- Create a new detail checking account just for trade-ins. Use the Edit Accounts window to designate this account as a new Detail Checking Account.
- Create a new item that you can use with trade-in transactions to reduce the amount of the sale. Mark only the I Sell This Item box and choose the new detail checking account (created in step 2) as the "Income Account for Tracking Sales' (Ignore the warning that appears when you create this account. The account for tracking sales is usually an income account, but that does not apply to your trade-in checking account.)
- Enter the sales information for the item being sold as you usually do. Then enter the special trade-in item that you set up. This will reduce the amount of the sale. (Be sure to enter the amount for the trade-in item as a negative number in the Total field.) Then record your sale.
- Use the Purchases window to create an item purchase for the trade-in item that will be entered into your inventory. Enter the purchase information for the item and enter the amount in the Total field as a positive amount. Then record your purchase.
- Open the Pay Bills window and use the pull-down list in the upper left corner to choose the special checking account that you created in step 2.
Note that steps 2 and 3 need to be completed only once. You don't need to create a new detail checking account or item record for any subsequent trade-ins you accept.