Recording donations of product to non-profit?

Sawdust

Hi,
I run a cabinet company and have donated some of my work to a non-profit organization. To record this in my ledger, should I invoice them and create a payment from a new account for donations to create a zero balance? What's the best practice?

Thanks!

J_Senn

My company donated a couple of refurbished air conditioning units last year. @Sawdust, I made an expense account for charitable donations and made journal entry from my inventory Asset account to that expense account.

That way, you can keep track of the dollar value you donated to charity and make sure the value of your inventory stays right.