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Recording Catering Services as a Donation
offthehoofbbq_1969
Member Posts: 5
I provide catering services and food on occasion as a donation. How can I account for ALL the expenses associated with the catering? I am currently creating an Invoice but I'm not sure if this is correct. The "value" of the catering is greater than just the food costs. I want to accurately account for the full value of the donation. Food costs, labor, travel, etc.
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Entering a vendor's invoice by type (costs, labour, etc.) is certainly one way of doing it since you still have to settle these expenses eventually. If you have a need to separate these costs from your normal operations for management ot tax purpose, you can create individual expense accounts in your Chart of Accounts to capture these expenses.
I give free pottery lessons to a non-profit group. I want to account for the donations of time, materials, kiln firing etc. in Wave, but unsure how to start. I was thinking I should invoice them for the value, but then credit them back some how, so I would then have some transactions to categorize and record the donations? But I don't know how to do this.
@ShelleysPots,
If you are in the US, you cannot deduct the value of a service as a charitable contribution. The cost of materials would be accounted for as a regular operating expense. Essentially, there is no special treatment.