Please use these instructions to assist  you when you receive a used unit on trade, and want to turn around and floor it.

When you receive a unit on trade and complete the sale of the new inventory, a journal entry is created to increase your Used unit inventory in QuickBooks for the Trade allowance amount.

Once the journal entry has been reconciled and posted to QuickBooks, you will see the increase in your Used Unit Inventory account.

Now, you are able to record the deposit to your selected Bank account, from the Used Unit Inventory account, for the amount the Flooring company has given you.

Your Used Unit Inventory is now showing to be less the amount that you received from the Flooring company.

Now you can create a  bill to the Flooring vendor, for the amount you received, offsetting the Used Unit Inventory account.

And once again, your Used Unit Inventory account is reflecting the amount the unit was floored for.

**Please note, if the original cost of the unit is different than what it gets floored for, you should only record the deposit for the actual flooring amount.  When the Pre-Owned unit sells, the original cost will be credited to your Inventory account.