If i track my inventory and a give away free samples how do i track it or adjust it without they label it as an income? Its a lost right?

Business owners frequently offer freebies or samples to attract customers, Jaco. I'll guide you on tracking and adjusting these free items without categorizing them as income.

Let's begin by creating an expense account to track these items. Here's how:

1. Click on the Gear icon and select Chart of Accounts.
2. Hit on New. 
3. For Account Type, choose Expenses.
4. For Detail Type, pick Advertising/Promotional.
5. Input a name for the account, such as Promotional/Samples-Not for Sale.
6. Tap on Save and Close.

Once done, you can create an invoice for the free item. Follow the steps below: 

1. Click on + New.
2. Choose Invoice and complete the required fields.
3. Provide details in the Description and Memo fields to clarify the action (e.g., note as Write-off for Promotional Sample Invoice #).
4. Click on Save and Close.

Creating an invoice for the free item reduces the item count in your inventory. 

After completing the invoice, you can create a journal entry to remove the income, credit the customer in Accounts Receivable, and credit the Cost of Goods to record the expense. Finally, apply a credit note.

For detailed instructions, check out this article: Write off inventory items given as promotional samples.

Regarding your last inquiry, the free samples inventory represents a loss as it's considered a business expense.

Tracking inventory is crucial for businesses to ensure efficient operations and accurate financial reporting. Below are helpful resources to assist you in managing your inventory effectively:

• Set up and track your inventory in QuickBooks Online
• Track donated inventory

If I can be of any additional assistance with other inventory-related activities, kindly insert a comment below. I'm here 24/7 to offer the information you need. I'll make sure to reply promptly. Keep safe.