Inventory…or not?

Summary

I have a client who owns a recycling center. Some of the products brought in, he pays for and puts into inventory. Other items are donated. He said QuickBooks does not allow him to put in an inventory item with a zero cost. Even if he puts it in at .01, it throws his costs way off. What else can he do?

Question

I have a client who owns a recycling center. Some of the products brought in, he pays for and puts into inventory. Other items are donated. He said QuickBooks does not allow him to put in an inventory item with a zero cost. Even if he puts it in at .01, it throws his costs way off. What else can he do?

Answer

The only suggestion I have is to NOT use inventory. In this example, you don't really have inventory as defined by QuickBooks. That is, you don't have finished goods that are purchased and sold.