Grants & Invoicing

Hello jeremym1977,

Welcome to the QuickBooks Community! In cases like this, you would need to turn off the pricing rule and adjust any existing or recurring invoices to be updated manually. Let me guide you on how:

1. Go to Gear Icon and select Account and Settings.
2. Select the Sales tab.
3. In the Products and services section, select Edit.
4. Select the Turn off price rules Beta checkmark.
5. Select Save and then Done.

If your pricing rule is turned off already, let me know so we can investigate further. I will be looking out to your response! See you around. 

That is already turned off for me.

What happened is that I booked the $75000 and now every month the invoice I have to send to get paid $6250 adds that amount to the original $75000. Not sure how to make an automatic invoice go out each month but not add to the total of the grant. 

I appreciate your proactive approach, jeremym1977, in ensuring the accuracy of your invoices in QuickBooks Online (QBO) and for following my colleague's suggestions. Let me provide you with step-by-step instructions to resolve your concern. We'll work through this together to find a solution.

Creating recurring transactions in QBO saves time and reduces errors by automating regular financial activities. It helps maintain accurate records for repetitive income, expenses, or payroll, without manual entry each time.

Here's how:

1. Go to the Gear icon.
2. Under the Lists column, select Recurring Transactions.
3. Click New, and in Select Transaction Type, choose "Invoice".
4. In Recurring settings, for Type, select "Scheduled".
5. For the Template options, leave "Include unbilled charges" untick to make sure the other charges won't add up to the original amount.
6. After completing the form, Save template.

Moreover, I've added this article if you want to review your recurring transactions in QuickBooks Online: Review your recurring transactions in QuickBooks Online.

For future reference, I'm adding this resource in case you want to record your invoice payments in QuickBooks Online: Record your invoice payments in QuickBooks Online.

I'm here to address any additional concerns you may have regarding your recurring transactions. If you need assistance with your invoice payments, other reports, or data interpretation, please don't hesitate to ask. I'm ready to provide further support as needed.

When I go into my recurring invoice that I have already set up that is already unticked so I'm not sure what is going on. The reason this is now an issue is that in the past I would only record the monthly income and not the entire grant at the beginning when we received the award. Now our auditor want us to book it at the beginning but the grantor wants a monthly invoice in order to pay us. 

I know why the income for the grant increases as you create a recurring invoice, Jeremy. I'll lay additional details here to keep you on the right track.

In QuickBooks Online, the total income for the grant you've recorded at the beginning will increase once the item on an invoice is associated with the same income account you use for the grant transaction. If you want to change the account from the grant transaction, you can modify it directly in the bank register with these steps:

1. Select the Gear icon, then Chart of accounts.
2. Locate the account you need to review from the list.
3. Click View register from the Action column.
4. Utilize the Filter icon to seamlessly locate the entry. You can also find the transaction by amount, reference number, or memo through the Find field.
5. Select the transaction and make the necessary changes. Pick Edit if you need to update details in the grayed-out sections.
6. Hit Save or Save and close.

Otherwise, refer to this material for the detailed process: Change the account for a product or service item in QuickBooks Online.

Moreover, I recommend seeking guidance from an accountant for the appropriate account for the entry to record the grant and the item. You can visit this link to look for an accounting professional if you don't have one yet: Find an Expert QuickBooks ProAdvisor Near You | Intuit.

Furthermore, you might want to scan these resources to record customer payments, depending on the payment method:

• Connect QuickBooks Payments to QuickBooks Online
• Record invoice payments in QuickBooks Online

Please leave a post in this thread if you have other questions regarding recording grants in QuickBooks Online. We're always here to help when the needs arise.

But what I NEED is to bill monthly for the amount of the grant .. in this case $75000 which is then paid in monthly increments of $6250/month. If I didn't need an invoice it wouldn't matter but I am required to send a monthly invoice. How can I do this?

I almost wonder if you should have broken up the $75,000 into 12 monthly invoices, instead of just putting the full amount in your QB.  That way you would at least be able to send the individual/ monthly invoices.  

I understand how crucial it is to send your monthly invoices, @jeremym1977. Allow me to explain this further.

When we create transactions in QuickBooks Online, especially recurring ones, the invoice amount will accumulate in the affected income account over time. This is working as designed. If you wish not to increase the amount awarded into the account while utilizing the recurring template, I suggest consulting with your accountant so that you'll be advised on what additional steps to take to ensure the amounts are accounted for correctly.

However, if you don't have an accountant, I can help you find one. Feel free to visit this page: Find a QuickBooks ProAdvisor.

Additionally, I've added this article as your reference in organizing your online bank transactions: Categorize online bank transactions in QuickBooks Online.

Don't hesitate to leave a reply in this thread if you need help sending your invoices in QuickBooks. I'm always here to help you.

@jeremym1977 

How did you book the $75K in grant income?  What was the offsetting account?  It should be an other current asset account called "Grant Receivable" or something similar.  Then, when you issue the invoice, assign the Grant Receivable OCA to the item on the invoice.  That will properly reduce the Grant Receivable OCA by $6,250 each time you issue an invoice instead of increasing your grant revenue.      

So I have 2 revenue accounts for grants (foundations or government) where all revenue is booked. I keep track of the individual grants through 'Projects'. 

I have a 'Product' set up as 'foundation grants' and one as 'government grants'. When I booked this $75000 grant it was to the specific client and under the project attached to that as a 'government grant' product. These products all go into the main Receivables account.

When I create an invoice, in order for it to be attached to the same client/project and the same grant category I use the same 'product' but this is what is creating the issue. I don't know how to do this, hope I'm making sense in my explanation. 

@jeremym1977 

Yep, that makes sense.  So, when you originally recorded the grant, you have $75K in grant revenue on your P&L and the offsetting $75K in accounts receivable on your balance sheet, correct?

If so, then IMO, the easiest way to handle this is to create a $6,250 credit memo each month dated the same day as you issue the invoice to the grantor.  Use the same Government Grant product on the credit memo that you used on the original invoice and will use on each monthly invoice.  Immediately after creating the credit memo, apply it to the outstanding receivable balance using New > Receive payment.  The purpose of the credit memo is to reduce A/R and the $75K in grant revenue by $6,250 so that the monthly invoice doesn't add to your totals.   After you receive payment on the monthly invoice, your A/R balance should be reduced by $6,250 and your revenue should always remain at the original $75K.