Entering a journal entry for a non-cash trx

NanaB208
NanaB208 Quicken Windows 2017 Member
edited August 9 in Registers & Transactions (Windows)

I a new bookkeeper for a tiny non-profit, sorting out a bit of a mess left by the prior bookkeeper. He purchased equipment for the organization using his personal credit card. And was then reimbursed directly by another non-profit foundation that we do not control. So none of the transactions went thru our books! I want to show Equipment Purchase in our books, and a credit to somethng like "support from XYZ Corp". It needs a journal entry - how do I do that in my Quicken Deluxe for Windows?

Answers

  • RalphC
    RalphC Quicken Windows Subscription Member ✭✭✭✭

    I'm not a CPA but your non-profit didn't purchase or pay for it and it was, essentially, gifted to your organization. There's nothing to record other than the existence of the asset(s). Capture the equipment as an asset and code it to a category perhaps named "support from XYZ Corp", or simply "XYZ Corp".

  • NanaB208
    NanaB208 Quicken Windows 2017 Member

    Since we are cash basis, we treat the Equipment purchase as an Expense. Easy to set up an expense account for that. My challenge is where/how to record it. With other purchases, we actually do the buying and then request reimbursement and Quicken handles that fine - open the checking account, book an entry to category Equipment Then when we get reimbursed, open same checking and deposit cash with offset to a Revenue account called XYZ Support. We need to track payments from the supporting organization.

    But in this case, we didn't fork out any cash - the prior bookkeeper did it on his own card (and knows now that it was a mistake.) I have tried a few things and they don't work as desired in Quicken. Grrr.

  • NotACPA
    NotACPA Quicken Windows Subscription SuperUser ✭✭✭✭✭

    Cash basis is immaterial. You had NO cash flow re: this transaction. You DID no buying. You also received no actual cash from the other organization.

    If you need to record the asset, you can record it into whatever account you use for assets with either the name of the Asset account itself, in square brackets ([account name]) OR record it into that account with a contribution category used.

    Q user since February, 1990. DOS Version 4
    Now running Quicken Windows Subscription, Business & Personal
    Retired "Certified Information Systems Auditor" & Bank Audit VP

  • [Deleted User]
    [Deleted User]

    @NanaB208 you need to reimburse that other non-profit foundation for that Equipment purchase. Then you can make an offsetting entry such as "Support from XYZ Corp".

  • NanaB208
    NanaB208 Quicken Windows 2017 Member

    To NotACPA, that is my question. I can record the acquisition to "Equipment Expense", (we don't record assets) but where do I do this? I have to open a Quicken account to record something in a register. Which account? And how do I prevent that transaction from affecting the account balance?

  • NanaB208
    NanaB208 Quicken Windows 2017 Member

    And funny thing - I am a CPA and I know how to book this in other systems because it is a journal entry. But in Q, I am baffled!

  • [Deleted User]
    [Deleted User]

    @NanaB208 the other non-profit actually purchased the equipment for your non-profit (in a very round about way). I would be less worried about how to enter the transaction on Quicken than having a good and accurate audit trail for the IRS.

  • NotACPA
    NotACPA Quicken Windows Subscription SuperUser ✭✭✭✭✭
    https://community.quicken.com/discussion/comment/20498299#Comment_20498299

    Again, your non-profit HAD NO EXPENSE. As was said earlier, you were essentially gifted this item.

    So, unless you want to record that "contribution in-kind", you've got nothing to record since you don't track non-financial assets.

    Q user since February, 1990. DOS Version 4
    Now running Quicken Windows Subscription, Business & Personal
    Retired "Certified Information Systems Auditor" & Bank Audit VP

  • NanaB208
    NanaB208 Quicken Windows 2017 Member

    Figured out how to show what we want to show - both the equipment purchase and the funds contributed to purchase. I made two entries in the Checking acct.

    1. A payment to purchase "Equipment", an expense account, reducing cash.
    2. A deposit to reflect the donated funds, a revenue account, increasing cash.

    The net result to cash is $0, but the two items appear in our cash flow statement to reflect the activity.

    Whew.

    Thanks for everyone's help.

  • [Deleted User]
    [Deleted User]

    @NanaB208 glad you got it figured out. Journal entries are not a built in feature in Quicken, but you can simulate a journal entry by creating zero split transaction.

    In your case the split would contain two transactions - the Equipment expense, and, the offsetting, donated funds income. The net of the two would be zero, and would not affect cash.

    You could even create a Journal Entries account on Quicken to hold all of your journal entries.

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