An In Kind gift is entered by adding a new gift either from the Gifts or Constituents Grid or from within the constituent's record under their Gift Tab. 

From the gift entry screen, select the gift type In Kind. You may assign a dollar value to the gift or leave it as zero depending on the accounting practices your organization has chosen to adopt. If the In Kind gift is to be used as an auction item, switch the Potential Auction Item? button to YES. You can enter the information about the auction item now, or edit it later.

Please see How do I add a gift? for more information.