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faigenistic
Level 1

Classifying Sales of Raffle Tickets for a Charity Donation

I run an e-commerce platform and we are running a charity raffle in which all of the proceeds will be donated. We are selling tickets on our website and prizes will be raffled off to the winners who have bought tickets.

 

How do I classify the sales of these virtual items (i.e. tickets) in QB when the money comes in as they will be turned around and paid in full to the charity organization when the raffle ends? Essentially they are not sales but almost a liability?

 

Thanks.

 

1 Comment
Rustler
Level 15

Classifying Sales of Raffle Tickets for a Charity Donation

Create a service item which posts to a liability account you create, use that item on a sales receipt to record the sale

 

when you pay out the funds, use that liability account as the expense (reason) for the payment

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