Our Customer Service Department is frequently asked how to handle discounts properly. We suggest a simplified, easy-to-follow method. One of two things that are most important to identify first is whether the gift is a Section 1 or a Section 2 item. Based on that, here are our suggestions.
If the item being given to the customer is a Section 1:
- Add the item to the invoice.
- Tab across to the Discount column and type 100 (or the applicable percent of discount being given).
- a. If other discounts are being given as flat dollar amounts, such as on a discontinued product, manually calculate the total discounts and add a Dollar field in the lower left corner of the invoice.
- If you collect tax on the discounted amount of product, right-click on the invoice and verify that ‘Tax Before Discounts’ is unchecked.
(If you’re uncertain if your Boulevard software is set up to tax before or after discounts, go to Preferences under the File menu. Select the Sales tab. The second checkbox is ‘Compute sales tax before discounts’ on invoice. If this is checked your Boulevard will calculate tax on the retail value at all times. If the box is unchecked, your Boulevard software will calculate tax on the invoice after any discounts given.) - Using the new, 2011 feature, Discount Type, make your selection (E.g. Hostess Credit).
By following these steps, Boulevard will remove the item from inventory, show the retail value of product as a sale, and show the retail value of the product given away in the ‘Gift Section 1 column‘ on your Weekly Accomplishment Sheet. By showing the offsetting discount amount in this way, you are reducing your tax liability against money you did not collect.
If the gift is a Section 2 product, the steps are even simpler.
- Add the item to the invoice.
- Tab to the Type column on that line and select Gift.
That’s it – as simple as can be. By following this suggested method of handling a Section 2 gift, the customer will not see the price you paid for the item and the value of the gift will appear in the PCP column on the WAS. The reason we recommend handling the transaction this way is because the Section 2 product is a write-off when it is bought. No discount should be shown; instead, just zero the price for the customer’s benefit. Now her history will be accurate showing what Section 2 items have been given to her.
Other Types of Gifts
There are always other situations where we find ourselves giving a gift of Mary Kay product. For the best advise, make sure you check with your tax advisor. Your Help menu has a variety of topics and selections to help in the Business Tips chapter.
To view other Boulevard invoicing features, visit the Invoicing section of our website.
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To view your sales, from under the Utility menu select Weekly Accomplishment (or by selecting the dollar sign symbol from the main toolbar). Then File and Print Preview.
