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user01428
Level 1

moving items to a donation expense account

We have items we are donating and I need to remove the items from inventory and charge them to an expense account (donations).  What is the detailed process for doing this?  We are new to quick books and we have QB Enterprise Wholesale and Manufacturing.  I also have items that were given as employee gifts that also need to be taken out of inventory and charged to an expense account (employee gifts). I assume this would be the same process?

2 Comments 2
Rustler
Level 15

moving items to a donation expense account

yes it is the same process

use inventory adjust, set the adjusting account to the expense account you want, lower the qty and save

Kayla H
QuickBooks Team

moving items to a donation expense account

Hi there, @user01428.

 

Great to have you in the Community. I can assist you with entering the donations in your QuickBooks account. 

 

First, you need to go to your Chart of Accounts and create a Charitable Contributions account.

  1. Locate the List option in QuickBooks.
  2. Select Chart of Accounts.
  3. On the bottom of the page Click Account then select New.
  4. Choose the Bank as the account type, then select Continue.
  5. Create a name for the account. (example:  Charitable Contributions)
  6. Save and Close.

 

Now let's create a discount item; this will take care of the cost of the inventory donated.

  1. Click List.
  2. Choose Item List.
  3. Hit the drop-down arrow at the bottom of the Item List.
  4. Create New.
  5.  Choose Discount for the type of Item created.
  6. Enter the Description and leave the Amount or % of the discount blank so you can choose the Amount that the donated items.
  7. Select which Chart of Accounts this will map too.
  8. Select the Tax Code of the Discount.
    • Taxable
    • Non-Taxable

       9. Click Ok.

 

Once completed, you can create a sales receipt, which will include the donated stock and Item you just created. 

 

 

Please know I'm always available here to lend a helping hand.

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