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Level 1

Laptop Donation

Our org received a donation and we gave the donor open invoices which they paid. I increased the inkind income for the total amount of the paid invoices. I'm breaking down the debit for each invoice paid under inkind donation. Few were for office supplies and fundraising software. However, one is for 6 laptops, which our participants use in our workshops every month for our college readiness program. Are the laptops an inventory asset /office equipment? What account do I select?

Solved
Best answer January 30, 2019

Best Answers
Level 15

Laptop Donation

You would not do this using Journal Entries, and debit-credit: "I'm breaking down the debit for each invoice paid under inkind donation"

 

You use a Donation form = Sales Receipt, for the Donor. You list there the DIK item that links to your DIK income account = the Value.

 

Make a Bank account and name it Clearing. "Deposit" that Sales Receipt here.

 

Now use Banking menu > Write Check to buy everything. The goal is to show what you Bought = what you Got for the value. For this one date, Clearing Bank ends at 0, if you did it right.

 

And now you have proper data entries, name of Donor on the Sales Receipt, and the breakdown, including Qty from the Items tab, if that applies.

 

What you are asking here is Expense or Fixed Asset? "Are the laptops an inventory asset /office equipment? What account do I select?"

 

You would use your own financial policy, if you have one. For the IRS, the rule is $2,500 per item or per invoice (meaning, a Bulk Purchase). Used laptops might be valued at $200, so 6 Times = $1,200. That would be Expense, not Asset.

View solution in original post

4 Comments
Level 15

Laptop Donation

You would not do this using Journal Entries, and debit-credit: "I'm breaking down the debit for each invoice paid under inkind donation"

 

You use a Donation form = Sales Receipt, for the Donor. You list there the DIK item that links to your DIK income account = the Value.

 

Make a Bank account and name it Clearing. "Deposit" that Sales Receipt here.

 

Now use Banking menu > Write Check to buy everything. The goal is to show what you Bought = what you Got for the value. For this one date, Clearing Bank ends at 0, if you did it right.

 

And now you have proper data entries, name of Donor on the Sales Receipt, and the breakdown, including Qty from the Items tab, if that applies.

 

What you are asking here is Expense or Fixed Asset? "Are the laptops an inventory asset /office equipment? What account do I select?"

 

You would use your own financial policy, if you have one. For the IRS, the rule is $2,500 per item or per invoice (meaning, a Bulk Purchase). Used laptops might be valued at $200, so 6 Times = $1,200. That would be Expense, not Asset.

View solution in original post

Level 1

Laptop Donation

Thanks. I will reframe from entering Inkind donations as a journal entry. The invoice for 6 laptops and one desktop was $1600 total. Completely understand the laptop are an expense. Thanks qbteachmt
Note..someone called me, stating they’re from QuickBooks and wanted access to my pc via logmein123  I disconnected the call immediately.

 

Moderator

Laptop Donation

Hello watwbroward,

 

We're glad to hear that qbteachmt has provided you the best answer for your accounting inquiries.

 

Also, we are not using logmein123 as a tool for screen sharing. It's good to know you've disconnected the call. If you have any questions about QuickBooks, please don't hesitate to post them here.

 

Have a good day!

Level 15

Laptop Donation

I recommend the book Running QB for Not For Profits by Kathy Ivens.

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