I gave a Quickbooks-generated invoice to a charitable foundation so they could create a tax receipt. Now that I have the tax receipt, how do I account for it?

We're glad to have you here, Hiriseads. I'm here to supply details about managing an invoice given to a charitable foundation in the QuickBooks Online (QBO) International version.

Generally, when you send an invoice to a customer, and they pay it, the payment is considered income or earned revenue. It aligns with accrual accounting, where income is recognized when earned, not received.

If you have a non-profit business, you can create a donation to account for this transaction. However, if your business is a corporation or a partnership and you initially treated this as a regular sale, void the original invoice and create a journal entry. This process will help you properly record the transaction. I’d be glad to guide you through the process.

To void an invoice:

1. Go to Sales, then select Invoices.
2. Find the invoice you want to void.
3. From the Action column dropdown menu, hit Void.

To create a journal entry:

1. Click the +New button and open a Journal entry.
2. Set the Date when the payment occurred.
3. Select an ACCOUNT for the DEBITS and CREDITS amount.
4. Optionally, you can include a Memo to clarify the purpose of the entry.
5. Once done, hit Save and close.

Also, I've added this article to help you record a service or asset donated to an organisation or other charitable contributions.: Set up and record in-kind donations in QuickBooks Online.

Moreover, managing tax returns or exceptions using QBO International varies by country or region. I strongly recommend working with your accountant on this. They can help you record the transaction appropriately and provide references based on your state or country.

If you need to reverse a journal entry for updating and correcting purposes, refer to this article to learn how to manage those entries: Reverse or delete a journal entry in QuickBooks Online.

We're always glad to help in any way we can. If you need further help with your invoices, sales taxes, or any other concerns in QBO International, feel free to comment below.