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Emesss
April 22, 2020
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Recording a donated fixed asset in desktop

  • April 22, 2020
  • 1 reply
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I am using the Non Profit version of QB Desktop and am trying to record a fixed asset donation.

I attempted to follow the instructions found in this forum, which may be for on line, and have run into the following problems.

In creating the sales receipt, I am unable to choose "deposit to" as I can't find it in desktop.

Same for the bill payment.

From a purely accounting standpoint, even if I were able to follow the directions, I would still wind up with the donated amount in income even on a cash basis report (the debit going to an asset rather than an In Kind expense.

What am I missing?

Best answer by KlentB

Hi RoseMarjorie,

 

Sorry for not responding sooner. End of the month, and I had a number of closings to attend to.

I hat to appear dense, but I am not sure what you mean by " the non-journal entry method will help keep track of your transactions properly."

What functionality am I losing by using the journal entry method?

Thanks,


Thanks for coming back to this thread, Emess.

 

 I'm here to share additional information about how journal entries work in QuickBooks.

 

You're not losing any functionality if you'll be using a journal entry. If you're not familiar with accounting, it's best to use the non-journal entry method where we set up an income and clearing account for charitable contributions and create a product or service item for the donations. Though, you can use the journal entry method to shorten the process if you understand accounting or you follow the advice of your accountant.

 

When you use the transaction-based method, the program will automatically post those transactions to its preset accounts. For instance, if we create an invoice, the program will automatically post it under accounts receivable. If we record it using a journal entry, we'll have to manually select the accounts that are affected in this transaction.

 

I recommend reaching out to your accountant to find out what's the best way of recording in-kind donations for your business and if you're unsure of what the Fair Market Value of a donation is.

 

You can also read this article if you'll be processing a credit card donation in QuickBooks Desktop in the future.

 

The Community Team always has your back, so please don't hesitate to visit us again if you have any other concerns or further questions about this topic. Have a great rest of the weekend.

1 reply

katherinejoyceO
katherinejoyceO
April 22, 2020

Welcome to the Community, @Emesss. I'm here to answer all your concerns. 

 

When creating a sales receipt, the payments are put into the Undeposited Funds account by default. However, you have the option to uncheck the Use Undeposited Funds as a default deposit to account in the Preferences. Here's how: 

 

  1. In the Edit menu, select Preferences.
  2. Click Payments from the list, then go to the Company Preferences tab.
  3. Uncheck the Use Undeposited Funds as a default deposit to account checkbox, then click OK.

 

You will now see the Deposit to option each time you create a sales receipt. 

 

And since you're using a non-profit version of QuickBooks Desktop, you would also need to set up these following:

 

  • Income and Clearing account to clear out the bill.
  • Sales receipt and a bill to record your in-kind donation.
  • Product/Service item for each donation.

 

Also, recording fixed assets for a non-profit organization is very unique and complex from just a regular business. I'd recommend consulting with your accountant to make sure your books are accurate. 

 

Here are our articles that can help you set up the income and clearing account in recording your non-profit donations: 

 

Let me know if you need assistance with anything else. We're always here to help. 

 

E
EmesssAuthor
April 25, 2020

Hi Katherine,

 

Thanks for the tip about preferences so I can now choose the account to deposit to.

While the method worked, I don't understand the need for going through all of those steps when a journal entry debiting In-Kind Assets, and crediting In-Kind Income would accomplish the same thing.

The In-Kind Income still shows up on both the cash and accrual P & L.

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