Vendor Donation

I can help you record donations in QuickBooks Desktop (QBDT), mrsstoll.

Let's set up an income and clearing account for charitable contributions. Then, create a product or service item for the donations. I'll guide you on how to do it.

1. Go to the Lists menu and select Chart of Accounts.
   
2. Click the Account drop-down arrow, and then choose New.
   
3. Select the Income radio button, then Continue.
   
4. Enter the account name and other information needed.
5. Hit Save & Close.
   

After that, create a clearing account. You can use it to move the money from one account to another when you can't move it directly.

Here's how:

1. Go to the Lists menu and select Chart of Accounts.
2. Click the Account drop-down arrow, and then choose New.
3. Select the Bank radio button, then Continue.
   
4. In the Account Name field.
5. Do NOT enter an opening balance.
6. Hit Save & Close.
   

Next, set up the product/service item for the donation.

1. Go to the Lists menu, and then Item List.
   
2. Click the Item drop-down arrow, then select New.
   
3. Select Service in the Type drop-down arrow.
4. Enter the item name, and other information needed.
5. In the Account drop-down arrow, choose the donations income account you created.
6. Hit OK.
   

After completing the previous steps, we can proceed to document the donation by entering a sales receipt and generating a bill. Finally, we will mark the account as cleared.

To make a sales receipt:

1. Go to the Customers menu, then select Enter Sales Receipts.
   
   
2. In the Customer:Job field, enter the donor's name.
3. Select the item you've created from the drop-down arrow.
4. Enter the amount and other information needed.
5. Hit Save & Close.
   

To enter a bill:

1. Go to the Vendors menu, and then Enter Bills.
   
2. In the Vendor field, enter the donor’s name.
3. Select the Item tab.
4. Choose the product or service you've created from the Item drop-down menu.
5. Enter the other information needed.
6. Tap Save and Close.
   

To mark the bill cleared:

1. Go to the Vendors menu, and select Pay Bills.
   
2. Select the clearing account from the drop-down arrow.
3. Click the checkbox of the bill you entered.
4. Hit Pay Selected Bills.
   

I've also suggested seeking guidance from your accountant. They can guide you through the steps and choose the right account to use.

Let me know if you have other questions about entering donations in QuickBooks. I'm always willing to help.  Take care.

@mrsstoll 

Just so I understand, your vendor donated an item to your business free of charge but still sent you a bill?  If I understand that correctly, it depends on what you're going to do with the item.  Are you going to donate it?  Sell it?  If you're going to donate it, there's nothing you need to record. 

If you're going to sell it (and you use QBD to manage inventory), receive the item on a bill at $0.00.  If you don't use QBD to manage inventory, add it to your inventory asset account and a corresponding amount to income using a journal entry - debit inventory asset, credit income for the wholesale amount of the item.