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mcoult45
Level 2

How to separate donation from a sales receipt so it won't show as a non-taxable "sale"

Hey, all!

I take care of a non-profit's books, who've sold T-shirts and decals to help spread the word around.  Many of these sales, which I put as a sales receipt to match with their Wix.com account, ALSO donated money along with that sale.  

However, now the Donation part of the sales receipt is showing up on the reports as non-taxable sales.  But these aren't sales, so I don't like them on the report.  Since I can't make a JE that involves an item, what is best practice to get those amounts off from Sales to Donations and thereby off the Sales Tax Liability report as non-taxable sales?  

1 Comment 1
BigRedConsulting
Community Champion

How to separate donation from a sales receipt so it won't show as a non-taxable "sale"

If you record your donations as sales, they will appear on sales reports.  There really isn't a way around that.

 

Donations are income, and aren't subject to sales tax, so having them show up on the sales tax reports as non taxable "sales" seems OK.  Does it create an issue?

 

 

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