I'm the treasurer of a nonprofit animal rescue group. At times, donors make payments directly to a vendor (usually animal hospital) as a donation. How do I record these "donations"
You can do this in more than one manner depending on your circumstance:
If you do not care about tracking Donor Names you can simply post a zero deposit
1. Go to Banking>Make Deposits and in the Received From Enter "Dummy" Customer called Donations or whatever you wish>You will receive a pop up and you can choose Quick Add and choose Other as the Type
2. Enter whatever Income Account you want to use in the From Account drop down and enter a description and the amount.
3. On the next line enter the "Dummy" Customer Name, and in the From Account drop down choose the appropriate account for the donation such as Office Supplies and enter the amount as a negative
If you wish to track your Donors
1. Go to the Customer Center and set up your Donor as a Customer (New Customer and complete information you wish on all tabs) and then enter a Sales Receipt for the Customer
2. Go to Banking>Make Deposits and select the sales receipts for Deposit if you have the Undeposited Funds feature activated.
3. Then, on the deposit screen, enter a second line as a negative number using the same amount and enter the Actual or Dummy Customer in the Received From Column
4. In the "From Account" column enter the Donation in kind expense account, such as Office Supplies, for whatever was donated.
This will offset the Income and Expense
Or:
Set up a (clearing) Account.
1. Go to Lists>Chart of Accounts and right click on any account
2. Choose New and choose Bank for the type
3. You can name it whatever makes sense to you such as Clearing Bank Account
4. Use this account to post to for both transactions, Income and Expense and they will zero out the account and no Income or Expense will be realized.
Enter the full amount of the Customer Payment in Receive payments.
When you make the deposit enter a 2nd line under the Customer Payment and you can use an "Other Name" such as Clearing Account and in the "From Account" choose the Clearing account you just set up and enter a negative amount for the amount you owe the Customer.
Enter a Vendor bill (whatever Vendor is appropriate to set up such a your Customer's name with a slight variance, QB will not allow and Vendor and Customer to have the exact same name.
Enter a bill for the amount and go to Pay Bills. Pay the bill as you normally would EXCEPT you will pay with the Clearing Account.
ALWAYS make sure you have a good backup prior to making any changes.
Keep us posted, we are here to help.
Lori Schwarz
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