In-kind donation

Good day, peni2001.

I'll make sure you can record your donations seamlessly in QuickBooks Online (QBO).

To record an in-kind donation, you should set up an income and clearing account for charitable contributions. I'll show you how.

1. Go to Accounting.
2. Select Chart of Accounts.
3. Click New.
4. Under Account Type, select Income.
5. On the Detail Type menu, select Non-Profit Income.
6. Enter the name of your new account. Say In-Kind Donations.
7. Click Save and Close.

Once done, you can go ahead and create a product or service for your items for the donation. You can do so by following the steps below:

1. Go to Sales.
2. Select Products and Services.
3. Click New.
4. Under Product/Service information, select the appropriate type of your item.
5. Enter the name of your item.
6. On the Income account menu, select the recently created income account.
7. Click Save and close.

I’m adding these articles below for future reference. These resources will guide you on how to track different types of donations in QuickBooks Online:

• How to record donations or charitable contributions
• Set up and record in-kind donations
• Track donated inventory

Drop a comment below if you have additional questions about tracking donations. I'm always here to help. Take care and stay safe.

Thanks for your response.

I recorded In-kind donation in QBO by your instructions. But I have some questions.

When I choose new item for in-kind donation, I can't uncheck box "I sell this products to my donors". So I have two boxes checked. Is it right?

When I create the bill, in Vendor field I can't choose the Donor name. Its only vendors. If I put it as a new one, I received message "Another donor, vendor or employee is already using this name". So I have different names in Sale receipt and In Bill. What to do?

I have Expenses for this In-kind donation as a downloaded from bank transaction. How I can record this expense?

Thanks.

Good morning, @peni2001. 

I appreciate you coming back and asking some more question about your situation. 

As for your first question, yes. You can't uncheck the box you mention.

 However, the only other checkbox on the page, you don't need to leave this one checked off unless you're recording an item that you purchase from a vendor. Here's a picture so we're looking at the same checkbox: 

You'll need to make the names a little different by adding or taking something away from the name in order to save that Vendor properly for the second question you asked. 

As for the third and final question, reaching out to your accountant would be the best route to be sure about the details you gave and what to do next. 

This should do the trick and answer all of your questions. I'm only a post away if you need me again. Best wishes! 

Thanks for quick response.

To make next donations, our organization ordered medical supplies from a supplier. All these goods were sent to those in need. We received an invoice and paid for it using online international wire transfer. Also we paid transfer fee (two downloaded from bank transactions).

How to record all these transactions in QBO?

Thanks in advance.

Let me help you record your transactions in QuickBooks Online, peni2001.

You can record the invoice you receive by creating a bill, then enter. Here are the steps you can follow.

1. Click + New, then  Bill.
2. From the Vendor ▼ drop-down, select a vendor.
3. From the Terms ▼ drop-down, select the bill's terms. This is when your vendor expects to be paid.
4. Enter the Bill date, Due date, and Bill no. as they're recorded on the bill.
5. Enter the bill details in the Category details section. From the Category drop-down, select the expense account you use to track expense transactions. Then enter a description. 
6. You can also enter specific products and services in the Item details section to itemize the bill.
7. Enter the Amount and tax.
8. When you're done, click Save and close.

To record the payment, click the +New button again, then choose Pay bills. Complete the Bill Payment form and save the payment. I'm adding this article to help record your expenses in QuickBooks: Learn how to track bills and record the payments. 

For the wire transfer fee, create a service item to track this expense. Then, record the fee by creating an expense. 

After recording the bill and the fee, you can then match them to the downloaded transactions from your bank. Check out this article for the detailed steps: Categorize and match online bank transactions in QuickBooks Online.

If you have more questions about recording your transactions, just leave a comment below. I'm always around to help you.

Thanks for the clear explanation.

I entered bill, recorded payment. Right now I see mistake in the registry: double payment, one as a bill payment, second as an expense (see, please, attachment). What is wrong?

If the payment consists of two parts, do I have to make a separate bill for each amount?

Thanks.

I appreciate you sharing the screenshot, peni2001.

I know what happen why you have double payment in your bank registry. I'll share the steps to fix it.

You stated having two downloaded transactions; these could be the wire transfer and transfer fee payments. The registry transaction marked as C is obtained from bank feeds, either through match or add. The one that is blank represents the transaction that you have entered into QuickBooks. Since you won't be able to match bill payment and expense transaction, it's possible that you have selected the Add option from bank feeds.

To fix this, you can Undo the expenditure transaction and then Exclude to remove it from your registry. I'll show you how.

1. Go to Banking menu, then Banking.
2. Select the Categorized tab.
3. Locate the expenditure transaction and click Undo.
4. The transaction will go back to the For review tab.
5. Select it and then choose Exclude.

Refer to this article for more information: Exclude a bank transaction you downloaded into QuickBooks Online.

To make sure your QuickBooks balance and the balance on your bank or credit card statement match, I also advise you to reconcile your account at least once a month. Check out this resource to guide you through the process: Reconcile an account in QuickBooks Online.

Let me know if you need further assistance in QuickBooks. I'll be around to help you.

Hello,

Thanks for great explanation.

I tried to add in QBO another type of donation, In-kind Contribution, but I couldn't do it myself.
Our non-profit organization bought medical supplies on Amazon and immediately sent them to those in need. I tried to write this transaction as a journal entry, I created income and expense accounts for In-kind Contribution, but I don't see it in bank register.
I wrote down the check, in the bank register the deposit = 0, but the downloaded from the bank transaction has amount $38.5. How can I record correctly this In-kind Contribution?