Set up a charitable contributions G/L account

February 09, 2022 21:42
Updated

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:
1. Go to Accounting > General Ledger > G/L Account
2. Click New.
3. In the G/L Account box, type 6135, and then press the Tab key. (The zeroes are filled in automatically.)
4. In the Description box, type a name such as Charitable Contributions.
5. 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.
6. 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).