Vendor paid my non-profit in 2018 for a 2019 sponsorship.

LB704 · ‎January 03, 2019

I am the admin for a non-profit. We have a vendor that paid in November 2018 for an annual sponsorship for 2019. Since they paid through Square, I had to track it for 2018. This deposit has already been reconciled. I need to move the money from the 2018 P&L and adjust it over to 2019 for budgetary purposes. What is the correct way to do this?

john-pero · ‎January 03, 2019

Edit the deposit to change it from Income to Prepayment (Current Liability) . You can do it with a journal entry but you may lose the ability to follow the name trail. Then in 2019 when you are ready to charge them you create a vendor credit memo from the prepayment liability, enter the vendor bill, and apply the credit memo. This gives you a paper trail your board members can follow

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john-pero · ‎January 03, 2019

Edit the deposit to change it from Income to Prepayment (Current Liability) . You can do it with a journal entry but you may lose the ability to follow the name trail. Then in 2019 when you are ready to charge them you create a vendor credit memo from the prepayment liability, enter the vendor bill, and apply the credit memo. This gives you a paper trail your board members can follow

LB704 · ‎January 03, 2019

I *think* I did this correctly and that it worked. I checked both P&L reports from last year & this year and it is appearing correctly, so YAY! It did give me a weird error though about "The transaction you are editing has been reconciled. Saving your changes could put you out of balance the next time you try to reconcile. Are you sure you want to modify it?". Will that screw me up when I go to reconcile Feb 1?

THANK YOU!!!!!!

JanyRoseB · ‎January 03, 2019

Hello there, LB704.

Thanks for getting back to us. Allow me to help and provide some insights about the error you're getting.

I appreciate you for following the steps provided by our Established Community Backer john-pero. When changing the deposit to the different account, it will not affect your balance as long as you did not make any changes in the amount and the transaction date.

On the bank register, make sure that the reconciliation status of the deposit account you've changed is marked as Reconciled (R) so it will not affect your reconciliation balance.

I also attached a couple of articles for additional reference:

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.

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Vendor paid my non-profit in 2018 for a 2019 sponsorship.