Reporting Store Use products correctly in Lightspeed

Gabriel GivensGabriel Givens Moderator, Lightspeed Staff Posts: 19 moderator
edited January 2018 in Products & Inventory
Often times, as business owners, it's common to need to take things out of your business' inventory for either personal use or for use in your business. In terms of the Retail Industry, this is called either Store Use (where you remove product from inventory for use in your store's business needs), or an Owner Draw (where you take merchandise for personal use outside of your business).

In a day and age where it is necessary to inform regulatory and taxing authorities about your acitivity relating to your business, accurate reporting and documentation is paramount to avoid any possible penalties or fees associated with owing back taxes or underpaying your taxes. This workflow will take you through some common things you may not be aware of.

Be aware also that tax law in your state, province, or nation may vary widely. Any suggestions here should be dismissed if they conflict with your locality's tax laws. Please follow your taxing authority's regulations about what is and is not taxable. If you are unsure, contact your tax agency for advice or your financial adviser or accountant for assistance.

Ultimately, the advise here is informational only and is not meant to be taken as financial advise or as accounting advice. Always consult with your applicable professionals before implementing any suggestions offered here or anywhere.

Store Use

Things we need to create first:
  1. Create a customer called Store Use and assign it the customer type "Store Use". If it does not exist, create it from the appropriate drop-down in the customer details.
  2. Create a Payment type called "Store Use" under Settings > Payment Types then save the changes. Then set Store Use to refund as Store Use and set this payment type to require a customer to use.
  3. Create a price rule by going to Settings > Price Rules and create a new price rule called "Store Use". Set this price rule to apply to all items and charges. To apply only to customers with the "Store Use" customer type, and select from the Price Adjustment section > Type > Markup.
  4. Save Changes and make sure the percent of the markup is set to 0% (this means it's sold at cost).
How to use this workflow:

Say I'm working in a shop and I need a roll of paper towels. I would grab a roll from my store shelves, and do the following:
  1. Start a New Sale
  2. Add the Store Use Customer to the sale.
  3. Scan the product I am removing from the store for store use.
  4. Once you have added all the products you are store using, click Payment and use the Store Use payment to pay for the sale.
  5. Then click Finish Sale
Other housekeeping with this workflow:
  1. Keep the Store Use payment archived when it is not in use.
  2. Keep a record of your purchases by running a Payments Received report and filter only the Store Use Payment type.
  3. Inform your accountant, bookkeeper or other person responsible for managing the business finances what you're using to keep track of Store Use products to ensure they put it in the right accounting column.
  4. If you are using Lightspeed Accounting, this payment will sync over to Quickbooks through this platform and will need to be mapped to some kind of expense account or other sales account. Please consult your accountant for information on what account is best for this kind of transaction.
For owner draws. Replace Store Use with Owner Purchase in all the steps listed above.
Post edited by Gabriel Givens on
Gabriel Givens
Senior Frontline Support
Lightspeed HQ

2 comments

  • dougfastfixdougfastfix Member Posts: 21 ✭
    We are a repair shop and we do this for bench supplies and parts used.
    Works great!
    We do a Work Order for each bench (watch and jewelry) each week and the watch tech or jeweler can just add parts or supplies to the Work Order.
    We also use Special Orders and tie ordering of supplies to the Work Order.
  • GAMartinGAMartin Member Posts: 11
    We just implemented this and it seems to be working well. We also did something very similar for items we use to repair trade ins that we resell. Thanks for the details.
    Simple things should be simple, complex things should be possible. Alan Kay
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