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OpsNir
Level 1

Noncash donations of products

We are a producer of COVID tests and would like to donate some tests to 501 c3 organizations.  How would we record this in QB De

1 Comment 1
MaryJoyD
QuickBooks Team

Noncash donations of products

I can help you in recording these donations, @OpsNir.

 

First, you must create an invoice in QuickBooks Desktop for the COVID tests items that you've created. Once done, create an account to use to record charitable contributions from your Chart of Accounts. The next step is to create a product item for donations. From here, issue a credit memo for the value of your donation.

 

To create an invoice:

  1. Go to the Customers menu and choose Create Invoices.
  2. From the Customer: Job drop-down, select a customer or customer job. If the customer or job is not on the list yet, you can select Add New.
  3. Add all the necessary information.
  4. Select Save & Close.

To create an account to use to record donations:

  1. Go to Lists menu and select Chart of Accounts.
  2. Click the Account drop-down arrow at the bottom of the window and click New.
  3. Set Expenses as the Account Type and click on Continue.
  4. Enter a Name for the account.
  5. Click Save & Close.

You can also consult an accountant to get advised what account to use when creating this account. 

 

To create a product/service item for the donation:

  1. Go to List at the top menu bar and select Item List.
  2. Click the arrow beside Item and choose New.
  3. Under Type, select Inventory Part.
  4. Use the account you've created from the drop-down list in the Income account field.
  5. Add the needed details.
  6. Click OK.

To issue a credit memo for the value of the products you're donating:

  1. Select Customers and then click on Create Credit Memos/Refunds.
  2. Enter the info for the credit memo or refund. 
  3. Click on Save & Close once you're done.

Check these articles for more information: 

Let me know if you need further guidance in recording your donations. I'm always here to assist. Have a great rest of the day!

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