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Jim2® Business Engine Help File

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Donations of Stock

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There a two ways this can be done, with the same end result.

 
Method 1

Add the stock to a job where Cust# is the recipient of the donation.

Adjust the sell price to equal the current COGS for the stock in question.

Change default tax code on sell from G to X (exclude from overall sales reported in BAS).

Invoice.

 

Now your recipient becomes a Debtor. To move the stock COGS to the expense ledger:

Open your recipient debtor record.

Record a debtor adjustment down against the appropriate expense code (typically 6-XXXX or 1-XXXX for Assets).

Make sure tax code on adjustment is also X.

Save.

 

The adjustment down will create a credit that should now be applied to the original invoice.

 

To apply the credit:

Edit the debtor.

Select Payment By: Credit.

Choose the credit you just created.

Apply in the Paid Now column to clear the Invoice.

Save and Close.

 

Method 2

You can use the Stock Adjust Down function to remove the stock from the current stock on hand count, then use a general journal to move the $ total to expenses.

Add a stock adjustment.

Select QTY - and the correct stock code to reflect which product(s) was used.

Finish the stock adjustment.

 
This stock adjustment down (debit) will move the stock $COGS into the 5-XXXX Stock Adjustment account in your General Ledger.

 

It then needs to be journalled to the correct expense account/s.

 

You have the choice at this point to allocate to specific branch, sub-branch or GL departments.

Add a General Journal.

Select the 5-XXXX Stock Adjustment Account.

Type the $total in the Credit column (credit back the Stock Adjustment account) tax code X.

Select the 6-XXXX Expense Account.

Type the $total in the Debit column (debit the Expense account instead)* tax code X.

 

Further information

Raise a Tax Invoice for Progress Claims /Donations