Patriot Software Advisor

Entering shirts in fund accounting.

by Kathy

Our church took orders for shirts with our name and logo on them. Anyone who wanted a shirt could reimburse the church for the cost of a shirt.
I need to know where you would enter the shirt purchase in the financials. Do you consider them to be advertising or should they be under evangelism or admin expense or just a pass through expense?
We have kicked this around for awhile and I thought I would just ask for opinions.
Thanks for your help.

Comments for Entering shirts in fund accounting.

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Jan 17, 2013
Entering shirst in fund accounting response
by: Anonymous

I sure don't of any rule that would suggest this should be accounted for in one certain way.

I have had similar transactions and have always handles as a 'pass thru' so that it does not show up as income into the 'General Fund' nor as an expense to the Church Budget.

Jan 21, 2013
Record all Expenses and Income
by: Vickey

I would record the shirts as a expense and the sale of the shirts as income. With selling them at cost they are going to offset each other.

I don't think it would matter if you recorded it as advertising or an administration cost. Either way would be correct.

Jul 03, 2014
by: Anonymous

Wouldnt that be nonrelated business income?

May 07, 2020
Cash for Tshirts a Donation?
by: Church Treas

Would the cash paid for the tshirts be shown as a donation to the church? If not a tax deductible donations, then would you call it Tshirt income?

Thank you and God bless!

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