As the title suggests, I am looking to determine how to handle free-issued item invoices. I think it's best if I provide an example of a situation we recently experienced and will experience in the future as well.
We made a purchase from Company A (one vendor) and need to free-issue it to Company B (other vendor) in another country. This vendor will be using this product for another order they are working on for one of our clients. When dealing with international freight brokers and customs it is required to have a commercial invoice with a value attached to the item. In this item we are providing the item for free to Company B. A 0.00 value against an item is not accepted, however, if we attach a dollar value to the free-issued item then it will show up in our AR and suggest that Company B needs to make payment, which is not the case. We want to ensure that AR is not impacted and that inventory flows through as needed.
Has anyone dealt with this scenario before? If so, how did you handle it?
Any suggestions are much appreciated. We had to manipulate a lot the first time around (our first time exporting) and I want to ensure everything is done correctly for future orders.
Thank you in advance :)
