Free orders, including charitable donations, samples, etc are common for Orchestrated clients and Orchestrated Software is equipped to handle them.
There are two general options for handling charitable contributions:
- Use a Goods Issue. This is more common for clients who don't wish to run reports regarding these sales and just want to remove them from inventory at $0. There are two factors to consider when filling out the Goods Issue:
A) Confirm the 'Inventory Offset-Decrease Account' G/L Account is posting to the G/L account you want to hit (for donations, this is typically an 'In-Kind Donations' account').
B) You can then choose the 'Variance Reason' on the drop-down in the Goods Issue document itself to confirm whether it was a sample, employee liquor, donation, etc. For more information on what 'Variance Reason' to use, see the TTB BRO Line Explanation article: https://support.orchestrated.com/hc/en-us/articles/207138837-TTB-BRO-Line-Explanations-Document
2. If you do an A/R Invoice you will have a financial record that you can print, email etc.
A) On the A/R Invoice, use Form Settings to make the 'COGS Account' field visible. You can then change the G/L account to the account you want to hit right on the row of the invoice (for donations, this is typically an 'In-Kind Donations' account'). Remember to set the price to $0.
B) You can then choose the 'Variance Reason' on the drop-down in the A/R Invoice document itself to confirm whether it was a sample, employee liquor, donation, etc. For more information on what 'Variance Reason' to use, see the TTB BRO Line Explanation article: https://support.orchestrated.com/hc/en-us/articles/207138837-TTB-BRO-Line-Explanations-Document
C) In the Chart of Accounts, you will need to highlight the G/L Account and flag it as a "sales account".* This allows the system to hit the account on an invoice, which usually hits a revenue account.
Using either the Goods Issue or the A/R Invoice works and will result in the same Journal Entry and impact on inventory. Goods Issue is faster, but an A/R Invoice allows you to have a document and is printable. In addition, if you create a Business Partner and A/R Invoice for your donation, samples etc, this allows you to run reports and track exactly how much you've removed over a span of time.
*To change to a 'Sales Account' in the Chart of Accounts, highlight the account you want to change and in the detailed section to the right, change the G/L Account Properties > Account Type drop-down.