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Sundara1
February 11, 2021
Question

Gifted/Donated inventory from owner

  • February 11, 2021
  • 1 reply
  • 0 views

Hi, hoping for some help.
I am donating my starting inventory to my business. I will be selling/tracking this inventory. I am curious how I would record this correctly in quickbooks plus online.
And the steps to do so.
Would this be the right approach?
(Business is sole proprietor)

- create all items In inventory with 0 qty, the cost(fair market value cost), and asking price
-make a bill under in-house vendor and add all items I created in inventory, add qty #
-save
- then make a journal entry to pay the bill: debit the total cost of the bill to accounts payable ,
Then credit the same amount to owner contribution equity account.

Any help is appreciated, thanks 

1 reply

Rebecca R
Rebecca R
February 11, 2021

Hi there Sundara1,

I replied to your Facebook message regarding this topic, but I'll go over it again here in case any other users are looking for support on the same topic. Knowing how to appropriately record transactions in QuickBooks Online is essential, so let me point you in the right direction.

 

In this case, reaching out to an accounting professional is the best course of action. My team and I are equipped with the expert knowledge to guide you on how to enter transactions or navigate the technical side of QuickBooks Online, but when it comes to what type of account to use, and what type of transactions or practices should be followed, that's where an accountant or bookkeeper excels.

 

If you're already working with an accountant, you can navigate to the My Accountant tab from the left menu to send them an invite to work in QuickBooks with you. This way they can explain the steps that you should take and even give you a hand with them. If you don't have an accountant, the Find a pro to help button on the same page will direct you to our database of QuickBooks-certified accountants that'll be more than happy to support you.

 

I want to share some articles that'll help you to complete the individual steps of the transaction you're trying to record, so that when you get the go-ahead from your accountant, you'll know exactly how to enter everything.

 

 

Let me know if you need any additional support with the technical side of QuickBooks, and I'd be happy to give you a hand.

Have a great day!

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