How would you use square when deducting inventory for internal use?

[LaCyclerie]

Hello all,

I'm wondering what would be the best way to use Square to achieve this. Let me explain.

We are a community bike workshop. Sometimes we have a special project we work on, for example a bicycle that was given to us that we want to fix to resale later.

While working on the bike, I will sometimes take new material from the store inventory to install it free of charge on the bike. What would be in your opinion the best and most efficient way to track such task (deduct from inventory when used)?

Should I have an open invoice for all parts that are used internally with a 100% rebate on it?

Should I simply do a transaction as soon as I get the material out of the inventory with a transaction?

Should I correct the inventory (with recount as the reason)?

It does not really matter what value has to be accounted to the repair, while it could be interesting...

Any ideas.

I'm using basic square plan, with a computer and a web access. We do have a barcode scanner connected to the computer. We also have a tablet with Square app on it that acts as a POS.

Many thanks,

Claude Ferron
La Cyclerie, Trois-Rivières, QC, Canada
Bike culture + Community workshop
www.lacyclerie.ca

[JJ_]

Hello @LaCyclerie 👋

I would suggest creating a discount that takes 100% off of an item and running a transaction with it at the time of using the part. This will help track both Inventory and the time that this discount was used. Please keep in mind that this is personal advice and not Square advice. I am also not a business owner but from my perspective, this would give me the best idea of 1) where my inventory is and 2) how many times I have comped a sale using this particular discount. 

I hope this information is helpful!

[LaCyclerie]

Thanks for your time and thought on that @JJ_ 

I might go this road. I have tried setting up an "open" invoice, a draft where I add material to it. I have applied a 100% discount also to it. However I have to add a 0,01$ fee as I can't make a 0$ invoice. This approach is a bit "sluggish" as I don't have a live tracking of the inventory (because the invoice is never open per say).

Your approach would be more "live", but I'll have to check if I can make a 0$ transaction. To be continued.

Thanks

Claude

[Brownbagroaster]

We are doing something similar for our coffee shop. We have a "front of house" discount that we apply to things we take from the warehouse to use in the shop (syrups, milks, cups, etc.) but I haven't yet figured out if this will be any less confusing. It does show up as a sale, although a zero cost sale, and I am not sure if this will mess up our accounting. I wonder if anyone else has a better idea.