Service in Kind
QuickBooks Canada : Pro 2012Did work for local school board. Issued an invoice for $200 plus taxes. Recv'd Tax Receipt for $200. How do I enter this and do I delete the original invoice
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cwQf5Aurur4yUOacwZ5xHE
02/06/12 2:54pm PST
Viewed by asker 02/09/12 4:46am PST
Viewed by asker 02/09/12 4:46am PST
3 Replies
Safari818
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Questions answered: 12046
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Advisory council of community power users.
ProAdvisor Canada
Members of the QuickBooks ProAdvisor Program
02/06/12 8:35pm PST
No, don't delete the invoice.
"In kind" arrangements are also known as barter and are subject to normal bookkeeping and accounting procedures and income tax treatment.
It's easiest to record this by creating a new "bank"-type account called something like "Clearing". Record receipt of payment for your invoice, deposited to Clearing. Then record a cheque from Clearing for Charitable Donation Expense. Enter an explanation in the Memo field of both transactions. The Clearing account will have a zero balance.
