3.3. Recognition in the organization's books
To facilitate the recognition process, a copy of the letter of agreement or contract should be given to the person in charge of the organization’s accounting. This person may then issue invoices as a way to record these transactions in the accounting records.
It may be advantageous to include in the organization’s accounts:
- A revenue line item related to exchanges of goods and services: for example, a “sponsorship and service exchange” line item;
- Expenditure line items related to exchanges of goods and services: one line item for “production sponsorship and exchange” and another for “marketing sponsorship and exchange.”
As mentioned in the Considerations in the “about” page, as soon as budget estimates are prepared, it may be helpful to anticipate the exchange of goods and services that will be required to carry out the organization’s activities during the financial year. These can then be integrated into the accounting process right from the start.