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DONATE

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DONATE

 

Handling Donated Merchandise

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Direct Inventory Adjustment

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You could adjust the inventory level down from the Edit Inventory screen

(2,8,E) without making a sale. The adjustment allows a very small note

for future reference - enough for names but not enough for addresses.

 

For better accounting you'd want to follow this up by entering a

General Journal Entry. The journal entry would have a minus $100

entry against the inventory asset account (often account 131) and a

positive $100 against the Donations Expense account. (Note that the

protected inventory account would not accept an adjustment but that's

ok as the inventory quantity adjustment already took care of that side

of the entry)

 

Sales

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For entering donated merchandise as a sale where you can track the

"customer" you can either sell the item at $0 or sell the

item at a certain price and use a donated gift certificate as the tender-type.

 

Note that selling at $0 can skew sales reports as can selling at full

price with a donated gift certificate for an item that you would have had

discount 50% to get rid of. You might want to sell it at a realistic

price and use a donated gift certificate.

 

You can remove such donation sales from some sales reports if you type a

special DEPT code in the sale and some sales reports (such as 6,2,3

Itemized Sales Reports) will allow you to exclude certain DEPT codes.

Not all sales reports can leave out sales based on the DEPT code.

 

Creating and using a donated gift certificate provides a way of specifying

a g/l code with which to expense the donation.

 

 

Recording a Donated Gift Certificate

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1.   This step is only needed if you want the program to record a

   General Journal entry of the donated gift certificate. This

   would be a one-time only setup, so you wouldn't have to set

   this up again the next time you need to record a donate gift

   certificate.

   a.   Create a G/L account in the Chart of Accounts from the

        Enter/Edit Chart of Accounts option (8,5,1 from the

        Main Menu)

   b.   Type this account number as the default account from

        the fourth or fifth page of Chart of Accounts Defaults

        (option 8,5,3)

 

2.   Record the Gift Certificate using the Issue Gift/Credit

   Certificate option from the Sales Menu.

   a.   If you are using pre-printed Gift or Credit

        Certificates, you should type in the pre-

        printed number of the next certificate in

        your book. Otherwise, you can let the Jewelry

        Shopkeeper assign the next available number.

   b.   Select the name of the individual or the organization

        to whom the certificate is being issued.

   c.   Type in a description to explain what the donation is

        for.

   d.   Type in an amount.

   e.   When the prompt "Do you want to Accept, Cancel, Re-

        enter? (or Donation/Ignore Payment)" appears, select

        the Donation/Ignore option.

   f.   When the prompt "Sure you want to ignore the payment?

        Yes No Donation or other Expense Code" appears, select

        the Donation option.

   g.   Note: If you want to create a general journal entry and

        the G/L code for this particular donation should be

        different than the default G/L for donations as set up

        in section (1) above, then be sure to choose the

        Expense Code option in step (f) above, before selecting

        the Donation option.

 

3.   You can print out a receipt for the donation. However, since

   the computer printed gift certificate receipts are not

   particularly special, many jewelry stores use pre-printed

   slips.

 

4.   If you are donating merchandise, you can now record a sale

   and "pay" for the sale with the donated gift certificate.

   You also might want to use a Dept Code of DON for the sale

   to help reports on these sales.