Buy back old gold or take it as a trade-in

This article shows how to buy old gold from a customer, or take it in part exchange for a new piece. The buy-back is recorded as a purchase from the customer with weight, karat and deduction, so your stock, your cash and the customer’s record all agree.

Before you start

• Today’s rate is entered for each karat in Products → Gold rates. See Set gold rates and making charges.
• An Old gold product exists per karat you buy (for example “Old gold 22K”, unit Gram, not for sale). Bought-in gold is stocked against these.
• Your deduction policy is written down: how much you deduct for melting loss, solder and impurities, and whether it changes by karat or condition.
• You know what your local law requires when you buy precious metal from the public. Many US states and cities require secondhand dealers to record the seller’s photo ID and a description of each item, and some require a holding period before you melt or resell. Rules in the UAE and Pakistan differ. Check with your local authority or trade association.
• Your role allows purchases. See Add locations, registers and staff.

Step 1: Identify the seller

1. Go to Customers and find the customer, or add them with +.
2. Fill in the ID fields your shop uses as custom fields, for example ID type, ID number and ID expiry.
3. If your law requires a copy of the ID, attach a photo of it to the customer record (Documents → Upload).

Never buy gold from an unnamed walk-in. The record protects you if a piece turns out to be stolen.

Step 2: Test and weigh

Do this in front of the customer. Remove stones you are not buying, weigh the gold in grams (or tola), and test the karat with your usual method. Record what you find, not only what the stamp says.

Step 3: Record the buy-back

1. Go to Purchases → Old gold buy-back (or Add purchase with Supplier set to the customer).
2. Add a line for each karat: choose Old gold 22K, for example, and enter the Weight in grams.
3. The Rate fills from today’s rate for that karat. Change it if you buy at a different rate from the one you sell at.
4. Enter the Deduction % from your policy. The screen shows gross value, deduction and net value per line.
5. Add an Item description for each piece, for example “broken curb chain, 22K stamp”, and attach photos if your law asks for them.
6. Choose how the customer is being paid:
   • Cash or bank transfer: the purchase is paid and closed.
   • Credit against a sale: the net value goes to the customer’s account as an advance, ready to offset.
7. Click Save and print the buy-back receipt for the customer to sign. Keep the signed copy.

Step 4: Offset it against a new sale

1. Go to Sell (POS), attach the same customer, and add the new piece.
2. Click Pay. In the first payment row, choose Advance / customer credit. The available credit from the buy-back is shown.
3. Apply the credit. The Balance drops by the buy-back value.
4. Add a second row for the rest: cash, card on your terminal, or layaway if they are paying over time.
5. Click Finalize payment. The invoice shows the new piece, the old gold credit and the balance paid.

Example

Example only. These are example rates, not today’s gold price.

A customer trades in a 22K chain weighing 11.664 g (1 tola) against a 22K bangle priced at $3,224.11 (the example from Set gold rates and making charges). The shop’s example deduction is 3%, applied to the gold value.

• Example 24K rate: $120.00 per gram.
• 22K rate = $120.00 × 0.916 = $109.92 per gram.
• Gross value = 11.664 g × $109.92 = $1,282.11.
• Deduction, 3% of $1,282.11 = $38.46.
• Net buy-back value = $1,282.11 − $38.46 = $1,243.65.
• Balance on the bangle = $3,224.11 − $1,243.65 = $1,980.46, paid by card or cash.

What happens to the old gold?

It sits in stock as Old gold 22K at the location that bought it, by weight. When you send it to the refiner or melt it for the bench, record a stock adjustment or a transfer with the reason, so the weight leaves stock with a paper trail. Respect any holding period your law sets before you do.

For the feature overview, see Old gold exchange.

Common questions

Can I buy at a different rate from my selling rate? Yes. The buy-back line takes today’s rate as a starting point, and you can change it. Many shops set their buy rate a little below their sell rate and keep the deduction for melting loss.

Can I see how much old gold I bought this month? Yes. Reports → Purchases, filtered by the old gold products, shows weight and value by karat, location and date.

The customer wants cash, not a trade-in. Is that different? Only in Step 3: choose Cash as the payment. The ID and record-keeping are the same.