Handling charitable donation as a discount on an invoice

edstrom johnedstrom at firebare.org
Tue Dec 2 15:00:01 EST 2014


Thanks for the suggestion.  I'll give it a try when I get a chance.


   JE

On 12/02/2014 06:41 AM, R. Victor Klassen wrote:
> I think the way *I* would handle this would be to create the invoice for the full amount, and then when you post it to accounts payable, you have the full amount.
>
> You can then pay it partly from the appropriate asset account, in the amount that you do - the $900.  And pay the other $100 from income/revenue-in-kind.  I haven’t tried this, but if it doesn’t work, you could pay the last $100 from assets/in-kind-holding-account (or some such) and then pay from income/revenue-in-kind into assets/in-kind-holding-account.   Which I know will work.
>
> A feature of this approach is that if you ever lose this supplier (in this case engineer), your accounting will already show $1000 spent on engineering, which it should.  You really did spend $1000 on engineering, but you also got $100 in a donation.   Whether this complicates or simplifies your tax reporting likely depends on your jurisdiction.
>
> On Dec 1, 2014, at 10:56 PM, edstrom <johnedstrom at firebare.org> wrote:
>
>> Hi,
>>
>> I have a similar problem and I'm wondering if there isn't a better way to accomplish this.
>>
>> For example, one of our engineers that we deal with will bill us, say, $1000 for some job and give us 10% discount as a non-profit station.  So we pay him $900 to the engineer (expense:profession fees:engineering) in the standard way and then have to book the other $100 as an in-kind donation (income/revenue:in-kind).  At year's end it'd be good to be able track expenses and in-kind donations together by vendor in reports.
>>
>> Normally this is done by splitting a transaction by hand as suggested above, but then its hard to sort these split up transactions by contractor at year's end.
>>
>> Is there a somewhat accessible way (short of changing code & recompiling) to configure the list of available accounts to which an invoice payment can be charged?  It seems like all that's needed here would be to add 'income:donation:in-kind' to the list of allowed payment accounts.
>>
>>
>> JE
>>
>> On 10/27/2014 11:51 PM, Maf. King wrote:
>>> Hi Kevin,
>>>
>>> I've had a thought about this.  Write out your invoice, but put details about
>>> the donation without specifying an account or sum of money - so just use the
>>> description field for a line or two.
>>>
>>> this will mean the invoice is posted showing the full amount owing.
>>>
>>> Process the payment in the usual way for the full invoice value.  Then go into
>>> the checking account and manually add a split to the payment transaction and
>>> split $100 off to expenses:whatever  (ie Assets A/R remains, reduce bank and
>>> add a new split)
>>>
>>> HTH,
>>> Maf.
>>>
>>>
>>> On Mon 27 October 14 21:37:34 Kevin Wilson wrote:
>>>> No other suggestions on this? Darn.
...



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