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Connect with and learn from others in the QuickBooks Community.
Join nowWe are a volunteer nonprofit utilizing QB 2019 premier for nonprofits, accrual method.
May we provide an example:
We receive a $200k grant from HUD:
dr A/R grants for $200k
cr Grants income account
Next upon contract, we contract a contractor to execute the project and upon completion::
dr Grants income account $180k
cr Contractor A/P
Note: now we have left in the income account $20k, this is our admin fee.
Next, we pay the contractor for project completion"
dr A/P Contractor $189k
cr Cash $180k
Result:
QB ignores the income account when posting to the P&L. This means, either I did not make
a proper entry or QB has an error in its software.
Please advise how this problem can be fixed. It is urgent !!!!
Regards,
qikd
email: [email address removed].
Solved! Go to Solution.
I got you covered, @np8.
Let me share to you detailed outline to ensure that you're able accurately tracked your non-profit transactions. Also, I've added screenshots as visual reference.
Following the suggestions of @john-pero, since the built-in account in the chart of account does not suit your business structure, you can easily create one.
Also, you can import your existing chart of accounts. You can refer to the steps below:
Once completed, you can create a service item and associate the income account you've created to it.
Now, you can create an invoice and record its payments.
Now, you'd want to deposit the payments to the bank account where the actual grant was deposited.
Meanwhile, you can create a bill to track the expenses used in implementing your projects.
By following the steps above, you can make sure that all transactions are accounted accurately.
Lastly, I've added these articles to help you manage your non-profit transactions:
Swing by here in the Community if you have other questions about getting the most out of QuickBooks full potential. I’m just a few clicks away.
1. STOP using journal entries for money movement. Use deposits, checks, sales receipts etc. Journal entries bypass the accrual vs cash concepts and cannot be used to track by name.
2. If your P&L is not displaying $20k income and $0 expense as your example indicates then
A. your accounts are not set up correctly
B. Your postings are incorrect
C. Software messed up? Possibly but for simple money in money out, unlikely.
Consider this, after your example , unless you missed a hugely important step you still have receivables of $200k and negative $180k in the bank.
If the grant is only a promise of money to come later use an Invoice, posting to an income account. For contractor use a Bill, and pay later.
Thank you for your directions. We will work on your advice.
QB is much different than our prior software. It appears
QB works from entries on their forms when constructing
statements as opposed to constructing from the journal.
Your direct comments and advice are greatly appreciated.
Just to add to the prior reply:
All accounts register the proper amounts within the
chart of accounts under activities. Bank records are
in order. It is only within the architecture of QB whereby
one must use their sales, invoice, et.al. to construct
proper statements. Therefore, the statements and
trial balance cannot be accurate without making the
entries in the sales, invoice, etc. accounts.as you
so correctly advise. Mostly, these accounts do not
apply to nonprofits. QB claims it has a nonprofit
program but the nomenclature and other items
do not resemble nonprofit accounting nomenclature
in many areas. With thanks again as it is obvious
that you know this product in detail. Sadly, I don't.
Regards
I got you covered, @np8.
Let me share to you detailed outline to ensure that you're able accurately tracked your non-profit transactions. Also, I've added screenshots as visual reference.
Following the suggestions of @john-pero, since the built-in account in the chart of account does not suit your business structure, you can easily create one.
Also, you can import your existing chart of accounts. You can refer to the steps below:
Once completed, you can create a service item and associate the income account you've created to it.
Now, you can create an invoice and record its payments.
Now, you'd want to deposit the payments to the bank account where the actual grant was deposited.
Meanwhile, you can create a bill to track the expenses used in implementing your projects.
By following the steps above, you can make sure that all transactions are accounted accurately.
Lastly, I've added these articles to help you manage your non-profit transactions:
Swing by here in the Community if you have other questions about getting the most out of QuickBooks full potential. I’m just a few clicks away.
Wow. Thank you for such detail and the time you must have taken to help us out.
Appears my fault for not using the software as it was designed. Both replies will
allow me to fix the problem. The bank and liabilities are all in order. It is just
that I expected the statements would generate from the journal. Thanks to
you both for straightening it our for me. Regards.
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