Our Trade In module let’s you enter accept an item in trade by issuing a credit (your purchase cost for the trade in) and entering a separate retail price for the Trade In item in one step while allowing you to create a product record, create the customer credit and add the to inventory in one step.
Activating Trade In Functionality
The Trade In button/option is managed at the user role level (as you may want to allow only certain types of Employees to accept an item in trade). To use Trade In option, you first need to activate the permission for each of Employee Roles that you would like to have access to this option. Go to Settings>Employees>Employee Roles.
Getting Started
Trade In feature can be used from both a sales receipt in a Front Register Transaction (with or without an accompanying purchase) or Customer Order (with a purchase).
For sales receipt, just open the Front Register>Action Menu>Transactions tab
Be sure to add a customer (don’t use the walk in customer).
For a Trade In from a Customer Order, go to Action Menu > Items > click on "Trade-In" button.
Types of Trade Ins
Two types of trade in are supported - credit only and trade in item.
Credit Only Trade In - The Credit Only Trade In uses a system SKU to create a store credit for the customer that does not reduce sales (like a return transaction would) but offers a store credit for something that will not be a used product for resale. This option does not create a product record for the item accepted in trade and does not impact store inventory.
Create Product Trade In - The Create Product Trade In allows the user to create a product for resale and credit the customer with the value/cost 'paid' to the seller (not resale price) of the Trade In product.
Steps to Accept Item as a Trade In
Step One - Add Customer - Create/add customer to transaction. As a store credit will be issued as part of the process, you will need to add a customer to the transaction.
Step Two - Create Trade In Item - Create a product record for the item being traded in at Action Panel > Transaction > Trade In. Creating the Trade In item will also create a stock adjustment for this item. If you intend to resell the item - use the create Trade In item’ option. If you are issuing a credit use the credit only option. Both options add a system line type that creates a store credit.
Step Three - Enter Credit Issued and Resale Price - The product cost you enter on the Trade In item will generate a customer credit in that amount. For the retail price of the trade in item – enter what you hope to get when you resell it. You can always change that in the future. You can also adjust the cost later to account for the cost of any repairs or cleaning. For now, though enter the cost as the amount you are paying to the customer trading in the item.
Step Four - Issue Credit - If this is a register transaction the store credit will automatically be applied to the transaction – if this is a customer order – you will be alerted that there is a store credit belonging to the customer when you click on the ‘Collect Payment’ button. In both cases you can use ‘Cash Back’ to give the customer cash or partial cash back for their trade in.
Add any additional items or services to be purchased to your receipt or customer order and carry on as you would for any other transaction. The amount of the credit issues on the Trade In will be automatically netted against the value of ither items sold on the transaction. Any unused credit will remain attached to the customer account and can be used in future transactions.
Special Cases: Firearms and Regulated Item Integration with FastBound
If this is a regulated item and you have an existing integration with FastBound, a FastBound acquisition can be started from the edit adjustment screen. A link to this adjustment will placed in the notes of the customer order or register transaction.
For more information, click here.
Cash Trade In
If you are not selling anything to the customer when taking a Trade In, but simply issuing consideration for the entire Trade In value as a store credit or cash payment issues to the customer, take the following steps:
1) Start in Register sales and not from the Customer Order screen.
2) From the Action Menu>Transaction - Click the Trade in and Create Item buttons.
3) A transaction line for the Trade In will automatically be added to the register transaction.
4) Press the red Payment/Refund button to issue cash back.
5) Select the Cash tender button to record the Cash payment to the customer. Note if you are paying with an office check – use the Back Office button and note the check number. You cannot use ‘check’ as the refund type (those are customer checks – not your business checks).
Frequently Asked Questions (FAQs)
Q. Does the trade-in create a taxable transaction in MicroBiz?
No, a trade-in does not create a taxable transaction in MicroBiz. Instead, the trade-in transaction creates a store credit that is a non-taxable transaction. Sales tax only applies on the transaction that uses the store credit.
Q. Do I need to add a customer to a trade-in?
Yes. You must add or attach a customer record to a trade-in transaction as a store credit is issued to the customer. You can do this in a couple ways. One way is to create a brand new customer in MicroBiz. You can also attach an existing customer record to the Trade In transaction.
Q. How does this work with firearms and FastBound
See the following article. click here