warranty repairs

[genaraban]

How do some of you enter warranty repairs on products that you make? How do you write off inventory used and labor? Sometimes there is a charge to the customer if he created the problem other times it is a no charge to the customer but we incurr costs. I could use some clarification on this.

[Lisa_p]

To write off inventory used in a warranty repair, you can use inventory adjustments and hit warranty expense as the expense account.

Or just put the parts on an invoice either charging the client or not. The cost will then go into Cost of Sales. How important is it to be in warranty expense? You could then do a journal entry to move it from COS to Warranty expense.

As for the labor, I think journal entries would be the way to go.