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Replying to:
Emesss
Level 1

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Hi Ryan,

 

I do understand how to make a journal entry, and I acknowledged that both methods work in my reply.

 

What I am trying to understand is if anything is lost by going the journal entry method. 

 

Recording the donation of a single asset would be two lines in a journal entry.

 

Using the non journal entry method, requires, on the front end, the creation of a third GL account (clearing),  a product or service item, and then for each donation a sales receipt a bill, and a second donor name so the system will accept it, followed by clearing the bill.

 

As far as I have been able to determine, either way results in a charge to assets, a credit to income (which QB treats as a cash transaction) for reporting purposes, having an identical affect on the P &L, Balance Sheet, and Statement of Cash Flow.

 

Surely there must be some reason for using the non journal entry method, as that is the method promoted on this board. I'm trying to figure out what that reason is.

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