Handling Donations in Cin7 Core

In exceptional cases involving donations, the following steps outline how to manage this process in Cin7 Core.

1. Create a Donation Service Item in Cin7 Core:
   1. Navigate to the 'Products' section.
   2. Add a new product and categorize it as a service item.
   3. Name the item appropriately (e.g., "Donation") and set the price to zero.
2. Assign the Donation Service Item to an Expense Account in Xero:
   1. In Xero, create an expense account specifically for donations. Ensure this account is enabled to accept payments.
   2. In Cin7 Core, map the donation service item to this expense account.

By setting up the donation service item and linking it to the appropriate expense account in Xero, you can effectively track and manage donations within Cin7 Core.

3. Add the Donation Service Item:
   1. In the 'Additional Charges' section of the sales invoice, add a new line.
   2. Select the donation service item you previously set up.
   3. Input a negative value for the donation amount.
   4. Ensure that the account associated with the donation is correctly linked to your Xero expense account.

By following these steps, you can accurately record donations on your sales invoices in Cin7 Core.

4. The financial transactions are as follows:

5. By following the steps outlined above, you can ensure that:
   1. Stock Levels Remain Accurate: The donation process will correctly reflect your inventory counts.
   2. Cost of Goods Sold (COGS) is Properly Recognized: The associated costs will be recorded appropriately.
   3. Sales Revenue Reflects the Donation: The portion of the product that would have been recorded as sales is now accurately recorded as a donation in the system.

This approach maintains the integrity of your financial records and inventory management.