|NESFA® Treasury Procedures – Table of Contents||Last updated 09-Feb-2013|
When books (or other inventoried items) are given away, NESFA procedure is to reduce the inventory count, but record no money transfer. (In some organizations, the book asset account would be credited for the cost-of-goods and offset by a debit to a donations or good will account.)
Aggregate the donations and review copies given away by book and record them as sold to customer Freebies. This customer record is coded to price all items as zero, will decrement the inventory account by the quantity entered, decrease the inventory asset account for the books, and increase the cost of goods sold.
If the books are being donated to an organization for which there is an existing customer record in Peachtree (e.g., LASFS), use that customer record, but make sure that the items are recorded at Cost (or if there is no amount recorded as Cost, then at the hurt book price [50%]), and that the Cash account is changed to EX-Donations.
When a book is given away in conjunction with another sale, it should be simply added to the sales record with the other items sold, but the price should be overridden (or overwritten) with "0".
Review copies of books will sometimes not be reported explicitly, but have to be inferred from expense reports showing postage to send the books. The people who send those books out should be reporting how many of each book they send when reporting the postage expense. Postage for sending review copies should be charged to the SE-book account for the individual book, not to SE-Postage.
An alternate method of reducing the inventory for an item is to use the Inventory Adjustments task.