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Trade In Equipment

  • 1.  Trade In Equipment

    Posted 13 days ago
    We often sell a piece of equipment while taking in a used piece and giving the customer a credit against their purchase. Historically, we did this in NAV by creating a Sales Order and using a generic item which we called "Trade In" which then created a generic Purchase Order that we use for all trades.  This left us having to post the PO to a Posted Purchase Invoice which isn't actually a purchase.  This creates all sorts of havoc in inventory and purchasing.  But we can't seem to find a way to process a sale with a trade-in, in NAV, have the item we took in on trade show properly in inventory and have the profitability not show upside down on the original sale.
    We only started using NAV two years ago and we are learning as we go here.  Does anyone have similar experience with trades?  How have you handled these transactions in NAV?

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    Meghan Keough-Krueger
    Controller
    Federal Contracts Corp
    Tampa FL
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    Academy - Online Interactive Learning from Experts


  • 2.  RE: Trade In Equipment

    TOP CONTRIBUTOR
    Posted 12 days ago
    75% of our sales include a trade-in. When we ship a sale where we expect a trade-in, we have the system programmed to create a Sales Return Order. We have 2 different No. Series for Sales Return Orders: one for trade-ins (example: EX1234), one for true returns (example: RMA1234). This helps us to understand and treat them differently. Our costing method is a bit abnormal so this may not work for you, but we do not apply cost to the trade-ins. We do exact cost reversal for true returns.

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    Greg Enns
    ERP Coordinator
    Technical Prospects
    Appleton WI
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    Academy - Online Interactive Learning from Experts


  • 3.  RE: Trade In Equipment

    TOP CONTRIBUTOR
    Posted 12 days ago
    Edited by Robb Delprado 12 days ago
    When I worked for an end-user, we accepted a lot of Trade-ins.  Most of the time those were older versions of items we were selling.  We created a new part for the Trade-in Items so we could track them in NAV and then refurbish the salvageable ones and discard the obsolescent ones.  If we were selling a 5601 and taking in an old 5600, the Trade-In item would be 5600-TR.  We listed the Trade-in Item on our Sales Order with a negative quantity, so the customer would see the credit we were giving them on the Sales Documents.  Posting a negative quantity on a Sales Order puts the item into your inventory.
    We also set up a separate Gen. Prod. Posting Group and Inventory Posting Group for the Trade-in Items so we could record the reduction in revenue to a discount account when the Order was posted and track the value of our Trade-in Inventory in a separate G/L Account for Balance Sheet reporting.
    If you need any additional information on we how handled reporting let me know.

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    Robb Delprado
    Senior Trainer and Consultant
    New View Strategies
    robb@newviewstrategies.com
    860.558.8032
    Houston, TX
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    Academy - Online Interactive Learning from Experts


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