Service donation like non-cash contributions is recorded by following the steps below in order.
First, create an invoice for the products or services you donated. Do this by Clicking the +New icon and choose Invoice.
The next step is to create an account for charitable contributions.
Go to Settings.
Select Chart of Accounts.
In the Account dialog, select Expenses from the Account Type drop-down list.
Select Charitable Contributions from the Detail Type drop-down list.
Enter a Name for the account (for example, Charitable Contributions).
Click Save and Close.
After that, create a product/service item called Charitable Contributions. You can refer to the same steps previously mentioned. Just make sure to use the correct Product/Service information. Then, issue a credit memo to the customer.
For the final step, verify the credit memo was applied to the invoice.
Select Sales, then choose Customers.
Click the customer you donated the product or service to from the list.
On the Transaction List tab, confirm that the Invoice transaction you created at the beginning of the process has a Status of Paid.
Confirmthat the Credit Memo transaction you created is noted as Closed in the Status column.
Confirm that a new Payment transaction is listed, with $0.00 listed in the Total column, and Closed noted in the Status column.