Hi there, @ckfoodbank.
To record an in-kind donation, you’ll need to set up an income and clearing account for charitable contributions and create a product or service item for donations. I’d be glad to guide you how in your QuickBooks Desktop (QBDT) software.
Before we start, I recommend checking with your accountant for additional guidance and whether a donation is recorded as in-kind donations.
To create an account in your QBDT software:
- Go to the Lists menu and select Chart of Accounts.
- Click the Account drop-down menu at the bottom and click New.
- Select Income or Other income as the account type (you’ll want to consult with your accountant for the right account to choose).
- Enter the name of the account.
- Fill in the needed information and click Save & Close.
To create a clearing account:
- Repeat steps 1 and 2 above.
- Select Bank as the account type and enter a name (example, In-kind clearing)for the account.
- Then click Save and Close.
You can also read this article for more details: Create, edit, or delete account in QuickBooks Desktop.
Then create a product or service item:
- Go to the List menu and select Item list.
- Click the Item drop-down menu from the bottom and select New.
- Select Service as the item type.
- Enter the needed information and click OK when done.
When you receive the donation or contribution, create a Sales Receipt, and ensure to select the In-kind clearing account you created from the Deposit to drop-down.
Finally, when you receive the good and service donated, create a Bill and then pay the bill from the In-kind clearing account.
I also have here an article that you can utilize when you’re ready to reconcile your accounts: Reconcile an account in QuickBooks Desktop. This link can guide through the steps by steps process in matching your accounts effectively.
Tag me in if there’s anything else I can help you with in managing your QBDT software. It’s always my pleasure to help you. Have a great day and keep safe!
