Handling manufaturer rebates in COGS

Could you issue a credit order or apply a discount to the price paid for the widgits?

One possibility:

Create a COGS sub-account for Widgets (and any others you will get frequent rebates on). Edit the Widgets item to point to the new sub-account. Code the rebate check to the sub account.

This won't change the price in the item itself but its also not supposed to. However you will be able to keep the Widget costs (and rebates) isolated so that you can see a total that should reflect the end cost being $1ea.

Been there, done that :) Also created a Widgit sales sub-account. Due to the rebates, so far in april, I'm running a negative number for COGS! My best month ever :) My problem is that l plan to have these widgits in stock for quite a while. If I decide to sell one for $2 down the road, I know I'm making a buck, but to quickbooks it looks like I'm losing a buck.

Would this (somewhat ugly) scenario work?

1. Since I've already paid these bills, I should have an overpayment to this distributor in the amount of the anticipated rebate, yes?
2. when manufacturer rebate arrives, record it as an overpayment refund from the vendor

TIA !

-Joe

On the Vendor Bill, use the Items tab to record the Widgets at $1. On the expense tab of the same Bill enter the $2 per widget rebate amount. Code it to an account such as Rebates Receivable (a current asset account). Then when the rebate is received, code it to Rebates Receivable .

Karl, you are the man!! That is exactly what I was looking for. If you're in need of any widgits, let me know and I'll cut you a special deal :)

-Joe