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gr8oaks
Jun 6, 2007, 10:03 AM
As a non profit camp we operate a thrift store. When items come into our inventory at the store as donations we price them appropriately and make them available for sale. At times some items are useful to the organization and we pull them from inventory. In my books can I show it as an expense for the organization and show it as income for the thrift store. I could just have the organization write a check to the thrift store and then I know it would show up correctly as expense and income respectively but that doesn't seem to make sense to waste a check on. Any help is appreciated.

CaptainForest
Jun 10, 2007, 09:24 AM
Just to clarify….So the thrift store is the not for profit store and the “organization” are you guys?

If an item comes in which has a market value of let's say $100, your organization can buy it from the thrift store.

In your organization books, record an expense of 100 and revenue of 100 in the thrift stores books.

You don't have to write a check, you could just give cash, but in the end, your organization must transfer 100 to the thrift store. Or, if the thrift store pays you a monthly fee or something, just deduct the 100 off what they owe you one month.