cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

Donations

I have recently added a donation box to my business website, where it gives customers the option to round up their purchase total by adding a donation. This donation is calculated based on the total amount and the nearest pound. 

 

I plan to receive those small donations and at the end of the month donate them to a specific charity. 

 

I'm not sure how I should first record the received donations and secondly how to record the donation to the charity. Could someone please assist? 

 

Solved
Best answer May 29, 2020

Accepted Solutions
Highlighted
QuickBooks Team

Donations

Hi CB29

 

If you are wanting a line item on the sales receipt to show the donation, what you would need to do is create a product and service specifically for that and attach the created income account for it so you can see on reports the specific account. To do this go to the cog in the top right>select products and services>select>new>service> in income account box on the service >scroll the bar to the top of the box and you will see add new> in account type select income, in detail type select non-profit income in name>name it donations(or whatever else you require) save and close>then you can do the same thing in the expense account box on the service and set up an expense account>it is a case of selecting the nearest option  in the detail type and then naming what you want, save. Once this is done you can save and close the service item created then go to create sales receipt add and add a second line and select that service just created.

You can then when monthly paying to the selected charity create an expense in the + symbol in the top right and select in the item detail the same service and it will attribute it to the expense account set up for it

 

Alternatively, you can follow the same process except when you set up the service instead of creating an income account create an asset account( this would then show on the balance sheet)It is worth confirming with your accountant which they feel is a better option😊

 

View solution in original post

4 REPLIES 4
Highlighted
QuickBooks Team

Donations

Hello CB29 👋 Welcome to the Community. What you can do is, You can record the overpayments on the invoices, then journal to a liability account until you're ready to pay this to you're chosen charity, then create expense to the liability to show money leaving the business to the charity? Becky 😊

Highlighted
Level 1

Donations

Thank you Becky29,  without sounding too dumb, please could you explain it in lame terms? Smiley Happy 

 

I usually record my sales as sales receipts and each item has an income account, I would want this donation to be a line item within the sales receipts too. 

 

Do I need to create an income account for donations? And subsequently an expense account for it too? 

 

Sorry, my accounting knowledge is limited. 

 

Highlighted
QuickBooks Team

Donations

Hi CB29

 

If you are wanting a line item on the sales receipt to show the donation, what you would need to do is create a product and service specifically for that and attach the created income account for it so you can see on reports the specific account. To do this go to the cog in the top right>select products and services>select>new>service> in income account box on the service >scroll the bar to the top of the box and you will see add new> in account type select income, in detail type select non-profit income in name>name it donations(or whatever else you require) save and close>then you can do the same thing in the expense account box on the service and set up an expense account>it is a case of selecting the nearest option  in the detail type and then naming what you want, save. Once this is done you can save and close the service item created then go to create sales receipt add and add a second line and select that service just created.

You can then when monthly paying to the selected charity create an expense in the + symbol in the top right and select in the item detail the same service and it will attribute it to the expense account set up for it

 

Alternatively, you can follow the same process except when you set up the service instead of creating an income account create an asset account( this would then show on the balance sheet)It is worth confirming with your accountant which they feel is a better option😊

 

View solution in original post

Highlighted
Level 1

Donations

Thank you, that makes perfect sense, I really appreciate your help.