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.
Your Boulevard software arrives pre-set with color coding to better manage invoicing your Mary Kay customers. For instance, items not in stock (Backordered) will appear in aqua. When you are selling the last of an item, it will appear in fluorescent green. When you are repeating the GWP you have listed in Preferences, it will appear in pink.
To find out what other color options are available, click on the File menu then Preferences. Select the Format tab.
Learn more about customizing your Boulevard software from our website, or type the key word Preferences in the Search tab of Help, select the topic titled About setting Preferences. Selecting #8 provides additional instructions on customization and the topic titled Preferences goes into detail on Color Coding options.
Balancing your Mary Kay product order in Boulevard software before placing and receiving it into your inventory is crucial for tax records. Here are a couple of things to check:
Add all Section 1 bonus items with a 100% discount.
Add all Section 2 bonus items and change the price to zero.
If your state has items that are non-taxable, be sure these items are not marked to calculate tax (check the individual product dialog box). If you’re on our premium Product Update Service, check your quarterly newsletter for video demonstrations on adding the current product bonus to your product orders. As one of the benefits of the service, you can also call and our customer service representatives can walk you through step-by-step.
At times, part of the bonuses you receive may include items that cannot be purchased, or are part of a set. For instance, you may receive a single PC premium the month prior to its release (e.g., Mini Satin Hands Gift Set) or a merchandising product (e.g., Women’s Eau de Toilette Gift Bag). You even receive Queen’s Court/Section 1 credit for this gift. To balance your order in these cases, you’ll need to complete some additional steps.
When the order matches with the exception of the Section 1 retail (which should be short the value of the premium), go ahead and place and receive the order.
Edit the completed order to adjust your Queen’s Court/Section 1 retail value to include the PC Premium.
Upon completion of the order, if you track your PC Premium quantities, you will want to edit the physical count for the item received.
If you have received a free Section 2 item, that is not in your Boulevard product list, you can either choose to not include the item in your inventory counts (Section 2 is free – no tax is charged therefore will not impact your totals), or create a part number, then add it to the product order.
If you choose to add the item, we suggest using an alpha character part number (e.g., WEDTGBAG for Women’s Eau de Toilette Gift Bags), or wait until you receive the order and use the published part number from the MK packing list. Once the part number has been added to your Boulevard, you may then add the it to the order and change the price to zero. Complete the order as usual when your totals match the packing slip.
You love your Boulevard, we know you do. So refer a friend during the month of July! Not only do you and she get an entry into the Win LuAnn for a Day contest, but she may qualify for a special gift with purchase.
During the month of July, as our Seminar Special, we are offering a year on the premium Product Update Service FREE as our thank you to new customers who previously invested in another program and are now ready for Boulevard. So refer a friend today: she wins, and so do you!
(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.)
To find out what other color options are available, click on the File menu then Preferences. Select the Format tab.
