How To Handle Product Donations
1/11/09 5:54 AM, Viewed by asker 1/12/09 7:42 AM
Total Views: 453
I sponsor an electronics show with a few door prizes. Last year I think I simply made an inventory adjustment to an expense account; this doesn't let me track WHOM I gave the door prize items to. Is there a better/more thorough method? Thanks
Answer
I found THIS browsing the forums for Evil Windows Users:
"I was just about to write a note to my accountant, when lo and behold, I found the answer in QuickBooks Help (AND I actually understand it.)
Here it is:
Tracking donations of inventory items
Using a sales receipt, enter the sale of the inventory items for a $0.00 amount.
Enter the name of the charity as the customer:job.
Save and record the sales receipt.
Find the sales receipt and press Ctrl-Y.
QuickBooks displays a transaction journal report showing the cost of goods sold for the inventory items (the amount debited from the Cost of Goods Sold account). You will use this amount as the value of your donation.
Assign the donation to your Charitable Contributions account by entering a general journal transaction.
Using the value of the donation, debit the Charitable Contributions account and credit the Cost of Goods Sold account. In the following example, $200 of inventory is debited from the Charitable Contributions account and credited to the Cost of Goods Sold account.
Debit
Charitable Contributions
$200
Credit
Cost of Goods Sold
$200 "
Comment
Who could have known that evil Windows users could answer anything? Thanks for sharing this information!
Amy K