Charitable Contributions
gdrinot
Member Posts: 3
Where can I put donations on the chart of accounts? Both services and monetary.
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gdrinot
Member Posts: 3
Where can I put donations on the chart of accounts? Both services and monetary.
Comments
Hi @gdrinot.
For monetary donations, that would be an income category. As for services, that would depend.
Can you give me a bit more information on the kinds of services and why they would need to be accounted for?
Hi I have the same question. I have given some of my time to charities, running activities for them. I have a record of the time spent in preparation, running the event, and afterwards. The value of the time can be deducted from my profit, but nothing should come out of my bak account.
Hi @Waxwing. You could head over to Accounting > Chart of Accounts, and generate a new Expense Account (I'd call it something along the lines of Charitable Activities). You could then post expense transactions with whatever value you wish to this account, which would then show as expenses against your profit, but not taken from a bank account itself.
Thanks, this has worked nicely. I needed to post it as a journal transaction, rather than an expense, otherwise the bank balance was reduced.
@Waxwing How would you log this using a journal transaction? I have never used this before and don't understand it really. Why do you need to add a debit and a credit? If I donate a $100 worth of product do I log a journal entry for $100 credit and then $100 debit?
Sorry for the delay in replying, just picked it up. For goods donated, there are other posts which explain what to do, it's a normal expense, except that the Operating Expense is Charitable Donations (or whatever you choose to call it).