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leafmusic1
May 15, 2019
Question

Grants and Projects

  • May 15, 2019
  • 2 replies
  • 0 views

We typically receive federal grants for projects which are working with specific customers on.  The project feature does not seem to have a way to bring in revenue from any other source than the customer tied to the project.  Has anyone figured out a workaround solution for this?  I don't want to class the grant revenue as coming from the customer.  But when I class the revenue from the government foundation, it won't let me attach to the relevant project because it doesn't match the customer.

    2 replies

    AlexV
    AlexV
    Level 10
    May 15, 2019

    I have a way on how to record grants, leafmusic.

     

    You can create an item that represents grants received from the government. You can use the Non-inventory or Service for this. Then, you'll need to create a liability account that is associated with the item to serve as the income account.

     

    Once done, you can create an Invoice:

    1. Go to the Project tab and select which specific project/customer you're working on.
    2. Click the Add to Project drop-down. Then, choose the Invoice.
    3. Choose the item you've created. Enter all necessary information.
    4. Select Save and close.

    The final step is to receive the payment. From the Add to project drop-down, choose Receive payment, and select the invoice you've created. 

     

    I'd also suggest reaching out to your accountant to consult for the best way of recording and the type of account.

     

    I'm always here if you need more help. 

      L
      leafmusic1Author
      May 15, 2019

      We're fully aware of how to receive and log a grant payment.

       

      The issue is with the new projects feature.  Since the 'PROJECT' is tied to a third party customer, there doesn't seem to be a way to get the grant from FOUNDATION A to connect to the PROJECT since FOUNDATION A and CUSTOMER B are separate customers within QBO and I can only add revenue from CUSTOMER B to the project.  Is there a workaround for this?

      AlexV
      AlexV
      Level 10
      May 15, 2019

      Thanks for getting back, leafmusic.

       

      As a workaround, you can create a journal entry. This way, you can split the grants to the two customers. Refer to this article as your guide: Create a journal entry.

       

      I'd still recommend reaching out to your accountant about this.

       

      Please let me know if you have other questions.

      S
      SheilaD1
      June 15, 2020

      The Class feature of QBO will allow you to assign multiple funding sources to one "Project". The "Project" feature is too restrictive to capture the full-range of multiple revenue streams and expenses throughout a fiscal year. 

        L
        leafmusic1Author
        June 15, 2020

        Using classes is possible. But we already have multiple business lines.  So we would have to develop projects into Sub classes.  It would become quite complex. 

        we also use classes to differentiate between grant revenues and sales revenues.  So we would have to stop doing that. 

        D
        Deidre N
        July 21, 2020

        Hi.  Could you record the Foundation as being a sub-customer so that you could see the revenue coming from each?  Or is the Foundation also providing funds for other projects/classes?

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