Create a Warranty Invoice without Affecting Sales Margin Reports

The simplest method that won't distort your profit margin result is to:

• Issue a $0 invoice to your client,
• Make a second invoice to your supplier in receivable,

Client invoice:

• Make the following invoice at $0:

• JR    Replace Alternator 1 hour, with a selling price of $70/hr,
• JR    Replace Alternator Warranty -1 hour with, selling at $70/hr,
• AL    Alternator with a quantity of 1, costing $70 and selling for $155,
• AL    Alternator Warranty with a quantity of -1, one costing $70 and one selling for $155,

Supplier invoice :

• JR    Replace Alternator 1 hour, with a selling at $70/hr (Depending on whether the supplier pays your labor),
• AL    Alternator with a quantity of 1, costing $70 and selling for $70,

Note: If you put a costing at $70 and a selling at 0% to make a warranty invoice, you'll lower your average considerably.