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iksevy
Dec 17, 2020 6:25 PM UTC
Question

Non sales and non expense money run through the bank

We have a charity that is associated with our business.  People added money to a purchase and now we have to account for that.  We are going to write out a check for that amount to the charity,  This , I guess, is a 'run though" account.  Any Suggestions?

1 reply

Rustler
Rustler
Dec 18, 2020 12:36 PM UTC

Don't over think this, create a service item and link it to a donations income account

add that to the invoice or sales receipt and the amount, then receive the full payment and deposit

 

write the check to the charity and use a donations expense account

 

On the P&L income is reduced by expense

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