How to Handle Donations in Cin7

Title: : How to Handle Donations in Cin7

Summary: This guide explains how to set up donation service items in Cin7 Core to accurately track and manage donations and ensure correct financial reporting in Xero.

Prerequisites:

• Access to Inventory > Products
• Access to the Additional Charges section on Sales Invoices
• Access to Financial Transactions
• Integration with Xero

Steps

1. Create a Donation Service Item in Cin7 Core:

• Navigate to Products.
• Add a new product and set the type to Service.
• Name the item (e.g., Donation).
• Set the price to $0.00.

2. Assign the Donation Service Item to an Expense Account in Xero:

• In Xero, create an expense account for donations and ensure it can accept payments.
• In Cin7 Core, map the donation service item to this Xero expense account.

3. Add the Donation Service Item:

• Open a sales invoice
• Go to Additional Charges.
• Add a new line
• Select the donation service item.
• Enter the donation amount as a negative value (to offset revenue).
• Select the correct Xero expense account
• Review the Financial tab to verify the transaction.

Important Notes

• Always use a service item for donations to avoid stock and COGS issues.
• Ensure the donation item is mapped to the correct Xero expense account.

Common Issues

Issues:

• Stock discrepancies
• Unexpected COGS
• Donations recorded as sales revenue

Cause: Donation product is not set up as a service item

Fix: Create a Donation item and categorize it as a service-type product