Temporary Restricted Accounts - Non-profit

I've got you covered, and let's work this out so you can complete your tasks in QuickBooks Online (QBO), @ktrainor.

Before doing so, I need more information about the restricted accounts you want to display in the P&L. Can you tell me these exact accounts? You can also send a screenshot of where you'd want the accounts to be displayed. Knowing this will help me provide you an accurate information.

Don't hesitate to get back to me by clicking the REPLY button below. I'm determined to help you achieve this. 

Thanks for your help.  I am using QuickBooks Desktop.  I have attached where the temporary restricted accounts show up in the P&L statement in 2023.  We essentially want these funds to show up with the amount not used in 2023 in the 2024 P&L.

I appreciate you for laying out your concern here in the Community, ktrainor.

The temporarily restricted funds for nonprofits are those items that were received with a donor-imposed restriction that will be satisfied in the future (generally within one year). The donor's restriction may be for a particular purpose or program or use in a specified period. You'll need to do a journal entry at the beginning of the new year to move the reserves about the various funds to show the temporarily restricted accounts in the Profit and Loss report with the 2024 date period. With that said, I recommend consulting your accountant on how to properly record them in QuickBooks. 

Also, QuickBooks doesn't have a direct means to track restricted funds, but we can do this using classes and assigning all restricted funds to a class. Here's how: 

1. Click the Edit menu, then choose Preferences.
2. Choose Accounting, then go to the Company Preferences tab.
3. Select the Use class tracking for transactions checkbox.
4. If you want a reminder when you haven't assigned a class, select the Prompt to assign classes checkbox.
5. Press OK.

Then, set up a class category for expenses and accounts. Here's how: 

1. Go to the Lists menu, then select Class List.
2. From the Class ▼ drop-down menu, select New.
3. Enter the class name. For example, if you want to create a single Restricted Funds group and then add subgroups of restricted funds types, enter "Restricted Funds".
4. If it's a subclass, select the Subclass of checkbox and find the class you've created.
5. Press OK to record and close the window.

I'm adding this article for more details: Set up and use class tracking in QuickBooks Desktop. To keep track of the restricted funds, just run and customize class-related reports. For more details, please review this article: Filter, sort, or total reports by Class

1. Click the Reports menu.
2. Select Company & Financial.
3. Choose the Profit & Loss by Class report, then click OK to run the report.

In addition, feel free to check out this article to learn more about how to customize reports in QBDT. This way, you'll be able to pull up the desired details for your reports: Customize Reports in QuickBooks Desktop

Please keep me updated if you have any questions or concerns about running your financial reports. I'll be by your side every step of the way. Take care and have a wonderful day.

@ktrainor 

Your question is a bit odd.  If you already recorded these funds as income, then there's no reason to do it again.  However, restricted funds should be recorded as equity on your balance sheet when received and then moved to your P&L as income when the donor's restrictions are satisfied.