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Marufa0013
Level 3

How to record the physical goods and products (not in monetary value )for non-profit organization in quickbooks online

Hi

My client is operating a non-profit organization. It receives foods, products as donation. The issue is how to record this physical goods, products in qbo to track the record of how much is left and how much is used. Since the qbo for this type of organzation has no option for stock inventory, so, how will I record the inventory in qbo and keep the record with proper account treatment?

Thank you in advance.

1 Comment 1
LieraMarie_A
QuickBooks Team

How to record the physical goods and products (not in monetary value )for non-profit organization in quickbooks online

Hi there, @Marufa0013.

 

Glad to see you here in the Community! I'm happy to help you track the products you receive from donors.

 

First, you'll have to set up an income and clearing account for charitable contributions. Then, create a product or service item for the donations. Beforehand, ensure you don’t have a non-profit account yet to track in-kind donations to avoid duplicates. Follow these steps to check if you already have one:

 

  1. Go to the Gear icon and then Chart of accounts.
  2. In the Filter by name field, search for In-kind donations.
    Capture.PNG
  3. If you find an In-kind donations account, there's no need to create another one. 

 

Otherwise, follow these instructions to set up the account:

 

  1. Go to the Gear icon and then Chart of accounts.
  2. Select New. If you see the New category window instead of the Account window, switch to the accountant view to continue.
  3. Choose Income or Revenue from the Account Type dropdown menu.
  4. From the Detail Type dropdown, select Non-Profit Income or Non-Profit Revenue.
  5. In the Name field, enter "In-kind donations."
    Capture.PNG
  6. Click Save.

 

Then, add a clearing account.

 

  1. Go to the Gear icon and then Chart of accounts.
  2. Select New.
  3. Depending on your account, you’ll see a window labeled either Account or New category. Follow the steps below for which window you have.
    • In the Account window
      1. From the Account Type dropdown, select Bank.
      2. From the Detail Type dropdown, select Checking.
      3. Enter a name, such as In-Kind Clearing, for the account.
      4. Select a starting date and opening balance for the account. The opening balance can be $0.
      5. When you're done, select Save and Close.
    • In the New category window
      1. Enter a name, such as In-Kind Clearing, for the account in the Category name field.
      2. In Select category, select Bank & credit cards, then choose Select.
      3. From the Account Type dropdown, select Checking.
      4. In Starting date and opening balance, select a starting date and opening balance for the account. The opening balance can be $0.
      5. When you're done, select Save.

 

After that, create a product or service item. For the detailed steps, refer to this article and proceed to step 4: Set up and record in-kind donations. It also includes instructions on how to record the donated goods and services you receive.

 

Be sure to tap me again if you have further questions. I'd be delighted to help. More power to your business!

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