- How do I set up a G/L Account for charitable contributions?
- First you want to determine a good position for the account based on your current order. For example, if your expense accounts are in alphabetical order such as the following:
6130-00-00 Cash Drawer Payouts OPE Operating Expenses 6140-00-00 Copy Machine Expense OPE Operating Expenses
Then the ideal number for a new account is 6135-00-00, because it remains in the sequence. Pick a G/L Account Number that makes sense with your current organization.
Next, set up the account:
- Go to Accounting > General Ledger > G/L Account
- Click New.
- In the G/L Account box, type 6135, and then press the Tab key. (The zeroes are filled in automatically.)
- In the Description box, type a name such as Charitable Contributions.
- Click Add G/L Group, and then in the General Ledger Groups table, choose your Operating Expenses (OPE) and your Net Income or Loss (IS) groups.
- Click Save.
Your charitable account is ready to use. This G/L account can be used on an AP invoice if a check will be processed. If product is donated, a inventory adjustment reason code can be used with this G/L account (see inventory adjustment reason code set up).