Gifts in kind that are assets can be tracked using an In-Kind Gift Type.
To enter an in-kind asset gift, use the following steps:
Note: When the payment is saved, you'll debit an asset account instead of a cash account, and credit the revenue account associated with the fund/product code.
If the asset is later sold or liquidated, you will need to track any profit or loss in your accounting system, not in netFORUM.
For example, suppose you receive an automobile. At the time of receipt, the car is valued at $1,000. You will enter $1,000 in the gift amount for the gift, and the constituent should be credited and acknowledged for their gift of $1,000. At this point, the development staff is essentially done with the transaction. The asset is now owned by the organization and should be managed like other assets.
Suppose the car is actually sold for $900.
You'll debit the asset account $900 and credit cash $900. But at this point, there is still $100 to account for in the Asset account debit site. To clear that out, you need to credit another $100 on Assets and debit a Profit/Loss Account for $100 to account for the $100 that was "lost" when you sold a car that was valued initially at $1,000.
When all is done, the Assets account is level because you no longer have any assets after selling the car. You have $900 in cash, and the Development revenue account still has $1,000. You account for the $100 loss in a Profit/Loss Account.