How to perform a Trade-in / Buy-Back / Customer Scrap Gold Purchase in SWIM
In SWIM, it is possible to represent where a trade-in/buyback has been performed. For example, if a customer wishes to offer you an 18ct Gold Ring in return for cash, you would call this a Trade-In. Performing this in SWIM is quite simple.
The following will outline 3 possible ways of performing a Trade-In:
Method 1: When giving the customer cash for their trade in
- In order to later search easily for the invoice related to the trade-in, we first need to create a Supplier. So create a new Supplier called "Trade In."
- Once you have agreed on the amount you are going to be paying for the item, you need to represent this payment in SWIM. So go into Sales Menu > Post End Of Day. Then at the bottom of the page click "Cash Drawer Payments."
- A new window will pop up titled "Add Cash Drawer Payment." In the Supplier field select "Trade In." Then select "STOCK PURCHASES" as the Expense Type. And enter the amount you are giving the customer for the item. For the purpose of searching and referring you should always put in an Invoice number and the details of the customer and item being traded in the "Notes" section. You will need the invoice number for later if you wish to enter the item being traded into your stock database on SWIM.
- If you are not paying any Tax tick the "No Tax" box. Regardless of whether you are paying Tax or not tick the "Stock" box as well.
- You can now click "Add." Once you click add you can close out of this window and in your Post End Of Day summary there will be a negative payment shown which represents the money you have given the customer for the trade in item.
- If you will want to add this item to Stock, go into Expenses Menu > Find Invoice, then do a search using the Supplier as "Trade In" and with the invoice number you created for this trade in.
- It will bring up the invoice generated to represent this trade in. You can now click "Enter Stock." In this screen you will need to add the stock item onto the invoice and enter the details of the item. The supplier code you will need to make up yourself. And enter the "Cost Price" as the amount you gave to your customer.
Once you have added the item onto the invoice, you are finished. You have now performed a trade-in/buyback sale on SWIM.
Note: If you wish to add the customers trade-in payment as customer credit rather than cash, use method 3 below, rather than this option.
Method 2: Trading an Item for another Item
This method is different to Method 1 and should only be used if no cash is being given back to the customer. This method is used when a customer wishes to trade an item they have for an item you have in-stock. (This method is still applicable if you are receiving money from the customer, as this method is through a normal sale.)
- Create a normal Customer Sale using the relevant customer who is trading in the item.
- In this sale screen, enter the item the customer is trading in as a non-stock item and enter the sale price as a negative. For example, if they are trading in a Gold Watch which you are giving them $250 for, you would enter 'gold watch trade-in' as a non-stock item into the sale and enter the sale price as -250 dollars.
- Once you have entered the customer's traded item you can then enter the stock item you are trading them in return. Enter this item as a positive Sale Price.
- If there is a balance remaining after the items on the sale are entered, make a payment on the sale, as per normal, selecting the payment type that the customer is using.
- You can now print a receipt and exit. And then enter the item you have just received from the customer into your SWIM database as a real stock-item through assemble stock.
Method 3: Giving a customer credit for scrap gold or an exchange
This method can be used where the customer is giving you scrap gold or a second hand item and in return you are giving the customer a credit in the store that they can use at a later time.
- If you do not already have a payment type called buy-back or scrap gold you will need to create such a payment type. In utilities, go to lists, sales payment types (at the bottom of the list). Enter in the payment type as buy back or something similar. Select 'non applicable' as the banking type. You only need to do this once, so that the payment type exists so you can perform this method.
Open up the customer in the customer details page, and select 'manage credit' at the bottom of the page, then in the 'increase customer credit' enter in the amount of credit you are giving the customer. Then in the payment type enter in 'buy-back' or 'scrap'. In the notes area enter in the details of the transaction. And click save. The customer will then have a credit amount that they can use on future sales.