Overview

A trade in transaction usually involves accepting in trade or buying an item from customer.  In exchange, the value of the trade can be applied against the purchase of another item, refunded to a customer or retained as a store credit.

Trade in transactions can be completed from the front register or order screens screens.

From Front Register

For the Front Register, you would create a new product record for the item being traded in, and then 'return' the item to stock.  This will create a credit for the customer for the value of the trade in.  This can be applied to another sale, or you and provide a seller with a cash payout, gift card or store credit for the amount.

Here are the steps:

Step 1 - Create Trade In Item

1) Use the Action Panel>Items>New Item button to create a new product record for the Trade In item.

Required fields are name, product type, SKU and price.  

Name: Enter the name that you will want to appear on the receipt.

Price: For the price field, enter the trade in value provided the customer as the 'Price'.  This will determine the value given to the seller.  

Cost: Enter the value you entered in the Price field.  When returned, the value in the cost field will be your COGS of the trade in.

PRO TIP: Be sure to use a SKU for a trade in or used item that is different than the SKU used to order a brand new item from your supplier.  You can make up a SKU, add a 'U' (for used) or create some sort of a numbering scheme (perhaps based on the date  - YYYYMMDD-1, YYYYMMDD-2, etc). 

Also enter the quantity that is being traded in.

IMPORTANT SETTINGS

Tax Class: By default the product added through the Action Menu have default tax class of 'taxable'.  As most trade in transactions are not taxed, you will need to be sure to navigate to the 'Settings' tab in the Quick Add form to change the Product Tax Class to 'Tax Exempt'.

Serial Number Tracking:  If you are receving a trade in of a seriaized item, be sure to go to the Settings tab and select the correct serial number treatment. This will allow you to attach a serial number to the item being traded in.

Step 2 - Return Trade In Item

Once the item is created, 'return' the item by selecting the line and then pressing the Action Panel>Items>Return Item button.  This will flip the quantity to negative and offer a credit to the customer for the trade in value.

Complete the transaction/exchange at the register.  The credit can be applied to other items sold or provided as a store credit, gift card or refund to cash.  The inventory of the item traded in will be +1 after the return was completed.

Serial Numbers (optional) - If you marked the item as 'Serialized Item Required' you will be prompted to enter a serial number. This serial number will be added to the 'In Stock' tab of the product record.

Step 3 - Update Price and Tax Status of Trade In Item for Resale

Resale Price and Cost Basis - After the sale, go to the Back Office>Catalog page, find the trade in item and then replace the trade in value in the Price field with the resale price (i.e the price that you will now sell the item for including profit).  If you entered the trade in value to the 'Cost' field during the return, you should be set.  If not, enter the amount paid to the seller for the trade in item.  This will be your COGS or cost basis.  

Tax Class - If you had set the product to be 'tax exempt' when accepting the trade in, be sure to change this back to 'taxable' so that sales taxes will be charged on the resale.  Once you have done this, you can sell the item like other items in stock.

Vendor (optional): You can optionally add a vendor such as 'Trade In' or the name of the person trading in the item.  

From Customer Order Screen

In MicroBiz Cloud, you can also use the built-in "Trade In" button from the customer order page:

Step 1 - Create Trade In Item

Step 1 is the same as a trade in from the front register (see above).  Create a new product record and add to the order

Step 2 - Return Trade In Item

Step 2 is similar to above, but you would use the Trade In button from the Action Menu (instead of the Return Item button)

Go To Register->Orders->Edit Order

Check the item checkbox that you want to trade in:

From the Actions Menu-> Item the Trade In button will activate and after clicking, the system will setup the traded in product in the order

Step 3 - Update Price and Tax Status of Trade In Item for Resale

Same as trade in from the front register.