How to Set Up Trade In Equipment

To properly track and allocate Trade-In Equipment to the correct account, you need to create a Trade-In Sale Code. This code will ensure that the trade-in is correctly identified and accounted for in the system, linking it to the appropriate general ledger accounts for tracking sales and financial reporting.  

1. In the Administration Settings, click "Sale Codes"

2. Click "+ Sale Code". 

3. Select the correct Branch, and Department, in this case we would select Houston > Used Equipment. 

Enter the Name of the Sales Code, in this case it would be Trade In Equipment. 

4. Scroll down to the Equipment section, enter Trade In Equipment as the description and assign the appropriate Equipment Inventory Asset account as the Sale Account; no COG Account is necessary. Click "Save" to save the Sale Code. 

5. Navigate to the General Section and click "Equipment"

**NOTE: If the piece of equipment is owned by a current customer and already in the Equipment Program search for the serial number and proceed to step 11. 

6. Click "Add Equipment"

7. Enter the trade in serial number and click "Next" to generate the next control number or utilize a dealer specific control number.

8. Select the correct branch and department from the drop-down menus.

Search for the correct customer to notate the who the unit was owned by.

9. Check the "Customer Owned" checkbox.

10. Enter the make and model of the unit.

11. In the Financial tab enter the acquisition costs, this is the amount you will be paying the customer for their trade in.

12. Click the "Trade In" check box.

13. Click "Save"

14. Locate the equipment sale work order and click "Equip".

15. Click the "Enter Control #" field and enter the trade in unit's control number.

16. Enter the amount as a negative into the sell field to indicate the amount being given to the customer for this unit.

Utilize the type of sale drop down menu to indicate the type of sale as a "Trade In".

17. Click "Add Equipment Entry" and invoice the equipment sale per your dealership policies.