How do i "write off" a customer invoice as a charitable donation in QuickBooks Desktop?

Credit Memo - customer name, line item Donations (for a business more appropriately Advertising expense) for $2500

Next Receive payment, apply credit memo , and you are done.

So I need to set up a new service item such as "Donations"? Services, other charges and a payment are my only options from the drop down in Credit Memo. Thank you for your help!

Hi John,

Can you break down the steps. When I created the line item. I selected service item then I selected the account as advertising, but my question is that the invoice amount $2500 still show up in my P & L as income. I do see $2500 under my advertising expense but they just wash each other. Is there some other step I'm missing. I'm on cash accounting.

I've got the steps on how we can apply the credit memo, 

WCSW.

Let me guide you with these steps:

1. From the Customers menu, select Credit Memos/Refunds.
2. Select a CUSTOMER:JOB.
3. Select Donations under the ITEM field.
4. Enter the amount of $2500 on the AMOUNT section.
5. Click Save & Close.

Then, here's how to link the credit memo and the invoice:

1. Click Receive Payments on the Customers menu.
2. Select the same customer's name on the RECEIVED FROM field.
3. Select the invoice and the credit memo.
4. Click Save & Close.

I'm just around if ever you need help. Keep safe!

Well the credit memo isn't listed with the invoice in the receive payments window, but I can click apply credits and it applies it. My Question is why does the $2500 show up as income on my P &L if I never received any money? It doesn't change my bottom line net income. It added $2500 to my income and $2500 to my expenses. Is there a way that I can reduce my net income?

Hello there, WCSW,

The memo reduces the amount that your customer owes to you. The credit issued can be for part or all the respective invoiced amount and is posted against the customer's outstanding balance.

A credit memo affects the bottom line. The cost into the inventory is lost, so when a credit memo is posted it has a direct effect on net income.

You can learn more about credit memos in this article: Give your customer a credit or refund in QuickBooks Desktop for Windows.

I'll be right here if you have further questions about this.

You seem to be missing the point it isn't affecting my bottom line net income. We don't have inventory. We are a service company operating on cash accounting. My bottom line net income is exactly the same. If I do nothing with the invoice it doesn't show up on my P &L, but when I apply the credit memo to it, it adds the invoice amount to my income account on my P & L and it also adds the donation to my  (expense account). But my bottom line net income stayed the same if I do nothing with the invoice or if I create a credit memo and apply it to that invoice. Is there way to make my bottom line net income go from $7424 to $4924?

Well, you totally missed a step which is creating the donation as an item.  A donation is an expense.  Expenses are not typically in an item list.