Grant from the State

Hello there, @CarrieT1.

I suggest creating a Bank Deposit to record the grant that your client received from State. You can always consult your accountant as well if you're not sure this is the best option for you and for proper categorization of accounts.

Here are the steps below to make a deposit:

1. Select the Create icon ⨁ and then select Bank Deposit.
2. In the Account drop-down list▼, choose which bank you'll deposit the money to.
3. Enter the information needed and hit Save and Close.

For more information and details about QuickBooks Online Bank Deposit, you can check out this article provided: Record and make Bank Deposit in QuickBooks Online. 

If you have any further questions, feel free to reach back out to the Community. Take care!

Thanks.  That is what we have done so far...Thanks