Hello..I hope someone can help us record this properly. We are a small dance studio, and are using a desktop version of Quickbooks. For a limited number of students, we give scholarships, which are an expense for us (we are for-profit and don't receive any grants). Here's the problem we're having with Quickbooks: If we invoice the student account for the full amount due, and then record our scholarship contribution (as an expense account), then our scholarship contribution shows up as an expense, but the full amount of the invoice shows up as income on the P & L, ( and when it's deposited in the bank account it shows up as income again, so it's double income). But most of these are 100% scholarships, so the student isn't usually paying anything, so it greatly inflates our income.
But if we invoice the student account for the full amount due, and record the scholarship amount as contraincome, then the income on the P & L only reflects what they actually paid, but our scholarship contribution doesn't show up on our expenses.
Can someone help me understand what we're doing wrong in recording these transactions?
Thank you
