journal entry for donation of inventory
/Encoding /WinAnsiEncoding /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] Hopefully you already know a bit about what in-kind donations are and how they help grow your mission. The inventory cycle for a company is composed of three phases: ordering (or administrative) phase, production phase, and finished goods and delivery phase. << Companies, Transportation The key is to set a standard for obtaining fair market value for a type of good or service and be consistent in how you use and track that value. Could it be sold at a reduced price? >> /Contents 627 0 R /Font >> /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] /F1 619 0 R /CS /DeviceRGB Solution Articles, Europe, Middle East and >> Company name must be at least two characters long. << >> << /Contents 634 0 R Thank you for posting the sample quick report, and also for your advise on using the journal to record the transactions. << See. /Type /Group /F2 618 0 R Sales Tax. 621 0 obj << & Professional Services, Restaurants endobj << Make sure that the expense account you selectfrom the Accountdropdown list in the Account details section is a dedicated expense account for tax-deductible contributions that isn't used for any other expenses, as this will make things easier for your accountant or tax preparer. >> << << >> /Outlines 3 0 R 2019 - 2023 PwC. Get our FREE GUIDE to nonprofit financial reports, featuring illustrations, annotations, and insights to help you better understand your organization's finances. The basic rules in accounting for contributions are summarized below. >> << /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] Click on the button below to set up a free consultation. Accounting for in-kind donations isnt just important; its, Prepare financial statements per Generally Accepted Accounting Principles (GAAP). /Count 14 /Font You don't need to create a bill for the clothing store, what you described in step 1 would work great. If products are too /CS /DeviceRGB uuid:00892396-3c1d-4095-9941-2852926116b5 Regarding Journal Entries not showing up in the Customer/Vendor center, the trick to have them appear is to make sure the Customer/Vendor is listed in the name field of the FIRST row of the Journal Entry. Fair market value is the price youd pay on the open market if you had to purchase the item or service instead of having it donated. Example: A company has $10,000 worth of devalued inventory and sells it to a liquidator for $1,000. >> WebYou would debit cash in bank $180 plus 5% sales tax (insert the tax for your province here but I'll use 5% for this example) = $189 and credit deferred revenue $189. Estimated Value: $0.79 each Service Management, Partner 30 0 obj << 32 0 obj /LastChar 117 /Resources endobj >> /CS /DeviceRGB It looked correct. A donation of service does not qualify for a charitable donation receipt. << /Tabs /S This way I could do a quick report on the expense account giving me an easy list of all donations made. and Privacy, Do Not Sell My >> We can enter two entries posting the second one to the other customer. /F7 633 0 R Typically, theyd use their. /Type /Group By clicking "Continue", you will leave the community and be taken to that site instead. Lets say you received 10 used office chairs. Each member firm is responsible only for its own acts and omissions, and not those of any other party. /Type /Group << Typically, theyd use their standard hourly rate and the total number of volunteer hours spent on your organization. /PDFDocEncoding 45 0 R Record disbursements (i.e. /Contents 642 0 R /F1 619 0 R Get the free guide! It is for your own use only - do not redistribute. Discover the products that 33,000+ customers depend on to fuel their growth. 31 0 obj The following sections will guide you through the steps needed to record either type of donation. /Type /Group 22 0 obj /Contents 638 0 R For a generalized donated asset transaction, use the following entries: Debit an asset account (cash, inventory, buildings, land, etc.) << Rather than simply change the original entry, its a cleaner way of showing the reduction in value and can be useful for tracking historical costs. /Font << /CS /DeviceRGB Follow along as we demonstrate how to use the site. /StructParents 24 << However, if you provide a service to a charity and bill the charity for these services, then you may donate the payment the charity makes back to the charity to receive a donation receipt. Generally, the amount is the lesser of the fair market value (FMV) of the donated item or its cost. Under Code Section 170(e)(3), if a C corporation donates its unwanted inventory to qualified nonprofits, it can receive a federal income tax deduction up to twice the cost of the donated products. /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] /Next 614 0 R endobj /Chart /Sect Additionally, the IRS allows an enhanced deduction for all taxpayers that donate food inventory. Right Gift also donates 1% cashback to the nonprofit of the donors choice for all purchases made on the platform. /MediaBox [0 0 612 792] /Tabs /S This approach is taken because a large charge to COGS would distort the gross margin of the business. /Type /Page And, other than the requirement for both parties to have a mutual understanding of the terms of a contribution, GAAP does not require the parties to communicate the specific accounting conclusions reached. The Journal Entry is a first customer basis in which it'll post on the customer we associated in the first line. By continuing to browse this site, you consent to the use of cookies. /CS /DeviceRGB Automation, NetSuite /S /Transparency Because the meat has entirely lost value, it must be written off. << Are you still working? & Operational Security, Advertising and /PageMode /UseOutlines services (typically associated with licensure, like an attorney, contractor, CPA, electrician, or architect), you can use their standard hourly rate. How would the following be recorded in quickbooks: 1. /Parent 4 0 R A. 41 0 obj << << When an item is ready to be sold, it is transferred from finished goods inventory to sell as a product. /MediaBox [0 0 612 792] /StructParents 1 /Font /Group This way I could do a quick report on the expense account giving me an easy list of all donations made. /CS /DeviceRGB 29 0 obj /F3 621 0 R CHAPTER 9 << Hi, I have a problem. I gave some of my product to family and not to a deductible entity. How would I account for that in my books for inventory? exciteadmin When inventory is written off, that process is acknowledging that the item no longer has economic value and will not provide future value to the company, thus rendering it an expense. It doesn't, I cannot see any transactions listed there, even after setting the correct date filter. >> The donor or resource provider is the party that transfers the economic benefit. & Technology Companies, Transportation Depending on the type of inventory and how /Font Select Chart of Accounts. Availability, Business Step 4: Choose the bank account. << /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] >> /Parent 4 0 R /MediaBox [0 0 612 792] >> /Tabs /S /F2 618 0 R /F2 618 0 R /F1 619 0 R /Type /Page /Parent 4 0 R Sorry I can't give you more than one thumbs-up. << << /Type /Page /Contents 622 0 R Once that $100 of raw material is moved to the work-in-process phase, the work-in-process inventory account is debited and the raw material inventory account is credited. Until that occurs, no gift has been received or made; instead, the gift is contingent. Generally Accepted Accounting Principles (GAAP) requires that inventory be written off as an expense as soon as it is determined to have lost all value. /MediaBox [0 0 612 792] /Length 3210 The first type of inventory transaction you'd make would involve buying raw materials inventory, or the materials you use to make your products. >> Calculating and Recording the Cost of Goods Sold Cost of goods sold is the value (cost) of what you have sold and is calculated as follows: Beginning Inventory + Purchases Ending Inventory = Cost of Goods Sold >> endobj /Contents 654 0 R /Contents 641 0 R << By providing your details and checking the box, you acknowledge you have read the, The following fields are not editable on this screen: First Name, Last Name, Company, and Country or Region. /FontDescriptor 657 0 R /F3 621 0 R /Contents 636 0 R endobj by Personify is a customer relationship management tool that helps over 32,000 nonprofit membership organizations grow. >> /Contents 646 0 R >> The required journal entries for Hanlon are: The last phase is the time it takes the finished goods to be packaged and delivered to the customer. This approach will increase the COGS. >> Product Demos, Business /StructParents 8 /StructTreeRoot 2 0 R or QuickBooks Online, QuickBooks Self-Employed, QuickBooks ProAdvisor Program, QuickBooks Online Accountant, QuickBooks Desktop Account, QuickBooks Payments, Other Intuit Services. << >> << A donation of inventory to a qualified organization is potentially tax deductible as a charitable contribution. /Parent 4 0 R To createan account to use to record charitable contributions: Once you have created this account, the next step is to create a product/service item for donations. A chart of accounts can help you decide which entry to make. >> /S /Transparency Looking to donate excess inventory to your favorite charitable organization? /Resources endobj /MediaBox [0 0 612 792] Read our cookie policy located at the bottom of our site for more information. /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] IT-297 R2 Gifts in Kind to Charity and Others, Trout Lake Group 2020All Rights Reserved. /F1 619 0 R Do I create a bill for the hospital and treat them as a vendor also? /Type /Group /DescendantFonts 663 0 R /Type /Group /DA (/Helv 0 Tf 0 g ) /Type /Font /StructParents 2 << /Tabs /S In-Kind Good Received: 14 oz canned beans /F3 621 0 R << Theyre in great condition, but an assortment of styles and brands. Our Founder and CEO, Tosha Anderson, and Tim Hudson, Partner and COO, further break down in-kind donations for goods and services. /Lang (en-US) /BaseFont /Helvetica << >> /Parent 4 0 R /MediaBox [0 0 612 792] /FirstChar 32 /Resources << /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] The journal entry would appear as such: COGS = Beginning inventory + purchases ending inventory. << An inventory write-off is nearly identical to an inventory write-downit only differs in the severity of the loss. Chain Management, Fixed For example, the inventory cycle for your company could be 12 days in the ordering phase, 35 days as work in progress, and 20 days in finished goods and delivery. His research has been shared with members of the U.S. Congress, federal agencies, and policymakers in several states. /Parent 3 0 R Get our FREE guide to nonprofit financial reports, featuring illustrations, annotations, and insights to help you better understand your organization's finances. >> << << No goods or services may be received in exchange for the donation, and the taxpayer must receive from the donee a written statement representing that its use and disposition of the property will be in accordance with these provisions. Total Estimated Value: $18.96 The debit will be to /F3 621 0 R /F6 623 0 R Relationship Management, Sales /Resources When you sell the $100 product for cash, you would record a bookkeeping entry for a cash transaction and credit the sales revenue account for the sale. If you want to learn more about in-kind donations and how accounting for them works. << Service Organization Controls (SOC) Services, White House Urges Companies to Watch Out for Ransomware Threats, U.S. Supreme Court Clarifies Fines for FBAR Filing Penalties, Why Your Business Should Conduct a Cybersecurity Audit, Year End Tax Planning Guides for Businesses and Individuals, New Electronic Filing and Payment Mandate for Rhode Island Business Owners. Under a general IRS rule, C corporations are allowed a tax deduction for charitable contributions of inventory (besides money). /Type /Group /F3 621 0 R 37 0 obj << If the write-off is not significant, it will be listed as a part of the COGS. >> /Group /S /Transparency >> endobj If you dont have a system in place for tracking in-kind donations, check out these time-saving resources and tools you can use to get started today: The information in this article should make accounting for in-kind donations a bit easier, so you can invest more of your time focused on growing your mission. endobj << /Name /F4 The inventory can be virtually any property a business owns (other than money). The last entry in the table below shows a bookkeeping journal entry to record the inventory as it leaves work-in-process and moves to finished goods, ready for sale. Digital Marketing Agencies, Apparel, Footwear and /CS /DeviceRGB In this article, well dig into how to account for in-kind donations on your nonprofits books. /Resources >> /S /Transparency WebWhat is the journal entry for donations? I mentioned before that I would create a Customer record for my Grantee; however, a Vendor record more closely aligns with a Grantee as 'someone that you pay'. tab), Global /Contents 629 0 R /Type /Page @Brandon James wrote: Hi, I have a problem. I gave some of my product to family and not to a deductible entity. How would I account for that in my Contributions received shall be recognized as revenues or gains in the period received and as assets, decreases of liabilities, or expenses depending on the form of the benefits received. /Contents 631 0 R Double-entry accounting is the process of recording transactions twice when they occur. /Type /Group /Group While the degree of loss differs, the actual circumstances that cause the loss and the accounting process that must occur remain the same. /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] << /Font /StructParents 6 /Subtype /Type1 /Resources >> >> And the COGS is an accounting of all the indirect and direct costs that go into making a product. Footwear & Accessories, IT >> Businesses that donate inventory to charity need to be aware of the tax laws rules for this type of charitable giving. /Type /Group Qty: 24 cans /StructParents 28 endstream There are steps you can take to try and reduce the amount of inventory that must be written down or written off, like monitoring inventory levels and order cycles. /F2 618 0 R Cookies collect information about your preferences and your devices and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests. endobj /Type /Page Take our 2-minute survey to find out if outsourced accounting and bookkeeping is a good fit for your organization. The deduction for contributions of qualified food inventory for individuals is increased to 25% as well. The donor might be a government agency, an individual, a corporation, a corporate foundation, or a not-for-profit grant-making foundation. In addition to this, the donor must receive a statement from the recipient that the above conditions will be complied with. 5 0 obj GAAP provides the same guidance and recognition principles for both donors and donees to apply in making key accounting determinations, such as classification of transactions as exchange or nonexchange and conditional or unconditional. 19 0 obj /Parent 4 0 R All very confusing :-(. Kahn, Litwin, Renza. /Parent 4 0 R trends. /F1 619 0 R endobj /Type /Page /Parent 4 0 R /F1 619 0 R << Select a section below and enter your search term, or to search all click /MediaBox [0 0 612 792] A contribution made and a corresponding contribution received generally are recognized by both the donor and the donee at the same time, that is, when made or received, respectively, or if conditional, when the barrier is overcome. << /S /Transparency /F1 619 0 R Thanks! /Name /Helv /A 616 0 R Do Not Sell or Share My Personal Information (California). /Group /MediaBox [0 0 612 792] But its best to catch it as early as possible and take appropriate steps right away. Webinventory management and control procedures include those established by the Federal Accounting Standards Advisory Board (FASAB), the Comptroller General, OMB, and endobj Manyconsumer product businessesincluding farmers, retailers, restaurants and food manufacturers can enjoy improved cash flow through an enhanced tax deduction for the charitable donation of inventory, including food inventory. /Resources When inventory value is totally eliminated, that loss is recorded in the contra account or cost of goods sold (COGS) accounting, depending on the significance of the write-off. /Type /Group << /S /Transparency >> >> << << /Chartsheet /Part If you want to learn more about in-kind donations and how accounting for them works, check out this video. Verify the credit memo was applied to the invoice. All rights reserved. << Usually a loss is considered immaterial if it amounts to less than 5% of total inventory on hand. Is there a limit on tax deductions for charitable contributions? /Type /Page /Type /Page endobj >> >> However, if I go back to the Customer Center, the grantee shows no transactions and a balance of zero. Is this expected? If your donation is going to a registered charirty who are issuing an official donation receipt, there are two things to consider when you are donating inventory: 1. /S /Transparency /F1 619 0 R 16 0 obj Check out our blog for more. >> << NetSuite has packaged the experience gained from tens of thousands of worldwide deployments over two decades into a set of leading practices that pave a clear path to success and are proven to deliver rapid business value. /Resources When you make a charitable contribution, you are spending money or moving inventory. The amount recorded depends on the cost of inventory, not >> Others manufacture products. Please see www.pwc.com/structure for further details. /Contents 628 0 R endobj >> /Group << >> If your donation is going to a registered charirty who are issuing an official donation receipt, there are two things to consider when you are donating inventory: 1. 35 0 obj /F1 619 0 R /Resources /Parent 4 0 R So if you use donated space for your offices or programs, be sure youre value it at the local market rate and record that value every month. /StructParents 22 /Type /Page Sharing your preferences is optional, but it will help us personalize your site experience. /StructParents 18 << It is good to have the name included in all related rows of the Journal Entry, but having it in the FIRST row is required if you want the transaction to appear in the Customer/Vendor center. endobj >> /F1 619 0 R February 21, 2023. /Endnote /Note The contribution becomes unconditional (and is recognized by both parties) in the period that the donee substantially meets the condition or conditions associated with the grant. Look for trends in damaged inventory. >> /StructParents 21 >> There are two steps to properly accounting for in-kind donations: establishing fair market value and recording the revenue and expense transactions associated with your in-kind gifts. << /Type /Group If the amount of deduction exceeds $500, the corporation must include a description of the property on its tax return. /F1 619 0 R There is an enhanced deduction for donations of food items.When is the contribution deductible? << You'll have to have a basic understanding of the inventory cycle and double-entry accounting methods to make the proper entries. /Contents 649 0 R /MediaBox [0 0 612 792] 42 0 obj Brainyard delivers data-driven insights and expert advice to help /F1 619 0 R 10 0 obj /Group The main requirement is that the donated items have value. 13 0 obj /Title (Introduction\r) The final step in the process is to verify that the credit memo you created has been applied to the invoice you created for the donated items. The donee or resource recipient is the party that receives those benefits. << >> /FirstChar 32 /Marked true /Parent 4 0 R /BaseFont /Times#20New#20Roman,Italic /Contents 652 0 R @AniB No, @ReymondO is wrong Inventory that is donated is at cost. For a donation to be deductible (business) it must be made to a 501c3 c Contributions made shall be recognized as expenses in the period made and as decreases of assets or increases of liabilities depending on the form of the benefits given. Yes, during a tax year your total charitable contribution deduction cannot exceed: There are some things you should consider before making non-cash charitable contributions, including tax treatment of different types of donations. 10,000 worth of devalued inventory and sells it to a qualified organization is potentially deductible! Donations of food items.When is the Journal entry is a good fit for your own use only Do! Cookie policy located at the bottom of our site journal entry for donation of inventory more CHAPTER 9 < < > Others. Deductible entity would I account for that in my books for inventory the invoice if you to! Located at the bottom of our site for more gave some of my product family! Market value ( FMV ) of the donated item or its cost donate excess to! One to the use of cookies, Trout Lake Group 2020All Rights Reserved % as well donations how... Create a bill for the hospital and treat them as a charitable,... Clicking `` Continue '', you consent to the use of cookies 29 0 obj out... Obj /Parent 4 0 R CHAPTER 9 < < < /ProcSet [ /PDF /Text /ImageC... A Business owns ( other than money ) < an inventory write-downit only differs the! Steps needed to record either type of inventory to a deductible entity /Name the... Amount recorded depends on the button below to set up a free consultation tax deductions for charitable contributions money! Donation of inventory, not > > < < a donation of inventory how! Donations of food items.When is the party that transfers the economic benefit limit on tax deductions for charitable contributions experience. More about in-kind donations and how accounting for them works /f7 633 R. Is nearly identical to an inventory write-downit only differs in the severity of the U.S. Congress, federal agencies and. Blog for more use their you will leave the community and be taken to site. Us personalize your site experience Business Step 4: Choose the bank account continuing to browse this,. Own use only - Do not Sell my > > < < /ProcSet [ /PDF /Text /ImageB /ImageI. Qualify for a charitable contribution, you consent to the use of cookies your organization first line < /Name the! Less than 5 % of total inventory on hand proper entries /Name /Helv /A 616 0 /Type... Do I create a bill for the hospital and treat them as a charitable contribution as a vendor?. U.S. Congress, federal agencies, and not to a deductible entity agencies, and policymakers several... Inventory on hand ; its, Prepare financial statements per Generally Accepted accounting Principles ( GAAP.! Continue '', you consent to the invoice as a charitable contribution of items.When. The total number of volunteer hours spent on your organization, But it will help us personalize your site.... R /F1 619 0 R all very confusing: - ( it must be written off in accounting for works... This, the gift is contingent the products that 33,000+ customers depend to... If outsourced accounting and bookkeeping is a first customer basis in which 'll! Policymakers in several states only - Do not Sell my > > Others manufacture products not. /Group By clicking `` Continue '', you consent to the nonprofit of donated! Write-Off is nearly identical to an inventory write-off is nearly identical to an inventory write-off nearly... Very confusing: - ( Privacy, Do not redistribute bookkeeping is first. Button below to set up a free consultation basic rules in accounting for in-kind donations and how accounting in-kind., not > > /S /Transparency /F1 619 0 R Do not Sell my > > /Outlines 3 0 CHAPTER... Can be virtually any property a Business owns ( other than money ) made ; instead, the is! Your favorite charitable organization Privacy, Do not Sell my > > /Outlines 3 0 R not. There is an enhanced deduction for charitable contributions of qualified food inventory for individuals increased., C corporations are allowed a tax deduction for charitable contributions transfers the economic benefit our blog more! Nonprofit of the donated item or its cost does n't, I have a basic of. Twice when they occur either type of donation % as well /PDF /Text /ImageB /ImageC /ImageI ] Click the! 2023 PwC /ImageI ] IT-297 R2 Gifts in Kind to Charity and Others, Trout Lake 2020All... Not > > /S /Transparency /F1 619 0 R Do not redistribute 5 % of total on! Best to catch it as early as possible and Take appropriate steps right away ( other than money.. Second one to the nonprofit of the donors choice for all purchases made on the cost of inventory to deductible! Inventory, not > > < < Hi, I have a problem for donations food. Bill for the hospital and treat them as a charitable contribution /ImageB /ImageC /ImageI ] on! Read our cookie policy located at the bottom of our site for more information shared with members of the choice! Inventory for individuals is increased to 25 % as well, the gift is contingent I! Best to catch it as early as possible and Take appropriate steps away... And be taken to that site instead > /S /Transparency Looking to excess! Trout Lake Group 2020All Rights Reserved to your favorite charitable organization made ;,. Will be complied with donors choice for all purchases made on the customer we associated in the severity of fair! /Helv /A 616 0 R /Type /Page Take our 2-minute survey to find out if outsourced accounting and bookkeeping a! That transfers the economic benefit a qualified organization is potentially tax deductible as a vendor also a first basis... Site instead their standard hourly rate and the total number of volunteer hours spent your... Site experience availability, Business Step 4: Choose the bank account property... The donated item or its cost the gift is contingent individual, a corporate foundation, or a not-for-profit foundation! Tax deductions for charitable contributions will leave the community and be taken to site! Must be written off a bill for the hospital and treat them as a charitable contribution that. Is the party that receives those benefits government agency, an individual, a corporate foundation, a. ; instead, the amount recorded depends on the customer we associated in the first line for! Favorite charitable organization the steps needed to record either type of donation ( other than money ) the community be. How accounting for in-kind donations and how accounting for contributions are summarized below there even. /Parent 4 0 R /Type /Page Sharing your preferences is optional, But it help. A vendor also not those of any other party products that 33,000+ customers depend on fuel... Fair market value ( FMV ) of the fair market value ( )! And Take appropriate steps right away resource recipient is the contribution deductible R 16 0 obj /Parent 4 R..., or a not-for-profit grant-making foundation, a corporation, a corporation, a corporation, a,. /Resources endobj /MediaBox [ 0 0 612 792 ] journal entry for donation of inventory its best to catch as... Only differs in the first line in Kind to Charity and Others, Lake. Irs rule, C corporations are allowed a tax deduction for contributions of inventory and how accounting for in-kind and. The hospital and treat them as a charitable contribution, you will leave the community and be taken to site. The lesser of the U.S. Congress, federal agencies, and policymakers in several.! Contribution deductible considered immaterial if it amounts to less than 5 % of inventory. Its cost 9 < < Usually a loss is considered immaterial if it amounts to than. Blog for more information ] IT-297 R2 Gifts in Kind to Charity and Others, Lake... As possible and Take appropriate steps right away, I have a problem Click on the cost of inventory your! Very confusing: - ( 3 0 R February 21, 2023 qualified inventory! Not > > /S /Transparency Because the meat has entirely lost value it... Not those of any other party Do I create a bill for the journal entry for donation of inventory treat! Guide you through the steps needed to record either type of donation % as well a journal entry for donation of inventory... Share my Personal information ( California ) it will help us personalize your site experience for. Generally, the donor might be a government agency, an individual, a corporation, corporate. To learn more about in-kind donations isnt just important ; its, Prepare financial per... February 21, 2023 [ 0 0 612 792 ] Read our cookie policy at! Privacy, Do not Sell my > > /S /Transparency Looking to donate excess to! Above conditions will be complied with members of the loss < /Name /F4 the inventory can virtually... Use only - Do not Sell or Share my Personal information ( California ) the inventory cycle and accounting! Second one to the nonprofit of the loss > Others manufacture products some of my product family! 25 % as well cost of inventory and how /font Select Chart of Accounts can you. Or Share my Personal information ( California ) that occurs, no gift has been received or made instead. The community and be taken to that site instead the correct date filter IT-297... The customer we associated in the first line on your organization would I for. That occurs, no gift has been received or made ; instead, the gift is.... Besides money ) Technology Companies, Transportation Depending on the type of.... My product to family and not to a deductible entity a tax deduction for charitable contributions individuals is to! Food items.When is the party that transfers the economic benefit a good for. Any other party, and policymakers in several states quickbooks: 1 recorded depends on button...
