• Registered: 09/28/2016
  • Posts: 5

Topic: How to record donation of inventory item

Hello FA folks,

I'm having a tough time trying to figure out how to record a donation of an inventoried item to a non-profit. I regularly give purchased product, like domain names and other equipment to churches and missionaries. I'm not so concerned about the tax benefit as I am about accounting for the purchased equipment.

I've created a 'charitable contribution' GL entry 6100 under general and administrative expenses but I'm not sure how to reassign the item to that GL from accounts receivable.

Ideas?
Al

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: How to record donation of inventory item

Sell it to the charity at 0 cost or 100% discount.

apmuthu's Website

  • Registered: 09/28/2016
  • Posts: 5

Re: How to record donation of inventory item

Thank you amputhu for the quick reply. It seems that maybe I've overcomplicated things.

One more question, please.

How do I sell purchased product to myself for use by the Company. For instance, I buy web hosting space, domain names, DVRs and CCTV cameras for resale but I also use some of these items for the Company for training and product familiarization. I could make a simple journal entry but the inventory items would not be affected. Thanks for help.

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: How to record donation of inventory item

When you buy for yourself (non stocked items like hosting) directly take it into expenses.
If these are stocked items then issue to your expenses account or have an own use customer with no tax.

apmuthu's Website