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We are a for profit organization and we received a grant for a specific program. How do I record the grant fund disbursement and subsequent expenditures? I wouldn't create an invoice for it, because it isn't sales or services, correct?
An expenditure is an expense.The grant funds should be in a trust fund bank account to keep them separate from operating funds.Transfer the amount of the expense out of the trust fund account and into the operating fund account, then pay the expense from the operating fund bank account.