Item price with a value of zero

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Posted on by Community Member

Hi,

Does anybody know if it's possible to create items with a value of 0?

Why should I use this? It's required to make free of charge purchase order. When a customer ordered new components for products due to damage or something, Company X buy new goods from Company Y with a value of 0 and sell them to the customer with a value of 0 (warranty). The items has to be in stock but it's more a standalone SO.

Or maybe someone else has another solution?

Best regards,

Nanda Spekschoor

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Guy Terry 28,924 Moderator on at

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Yes, depending on the inventory costing model (I should imagine you can't do it if the item has a standard cost).

If using actual costing, you would need to use inventory marking to ensure the cost of the zero value purchase order is assigned to the cost of the correct sales order.

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So, in that case; If I setup a standard cost model and allocate this to my item. It would be ok?

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Guy Terry 28,924 Moderator on at

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No, I was saying that if the item has a standard cost, you can't sell it at zero cost.

But I'm thinking some more about the item you wish to do this with. Is it an item that you normally buy and sell with a price, and occasionally you will need to buy it and sell it for zero price?

Or is it a special item that exists only for buying and selling at zero price?

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Weaveriski 23,618 Moderator on at

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If not standard costed the zero cost will impact on the cost depending upon the costing method. Many business do not like the zero cost of one to impact and dillute the cost of others, but it is the overall reality of the costing adopted based upon the process being defined. Some get around it in many ways - purchasing in full and manually crediting back (reflecting the free issue) or booking it into a separate warehouse if costing by warehouse are two approaches I have seen.

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Community Member on at

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As I said, it's more for products with warranty on it. F.i.: A custpomer buy product X with as warranty of 3 years. Within these 3 years a component of the product has been damaged. The customer will receive a new component for free. Company X in NL will receive this from company Y in Japan.

Do you know what I mean?

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Weaveriski 23,618 Moderator on at

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Yes selling for zero is no issue, cost at the normal/standard price, dont change the cost, take the hit against the warranty. Selling for 0 is not an issue for the system.

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Community Member on at

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Ok. So, i can do this on the same way as products with a value of more than 0?

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Weaveriski 23,618 Moderator on at

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Hi Nanda

I do not understand that statement I am afraid. Do what the same as products? You mean items and you mean just have a sales price of 0 rather than >0 then I would say yes! Just try it, pick, ship and invoice a sales line for 0.

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Community Member on at

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Indeed. I rest my case :-D

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Zeeshan.Rahim 151 on at

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Hi Guy Terry,

Can you please explain following statement, I am also looking for solution to purchase items at zero cost.

"If using actual costing, you would need to use inventory marking to ensure the cost of the zero value purchase order is assigned to the cost of the correct sales order".

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