Hi,
I am wondering what the best option is for grants our org issues other orgs. I am planning to set up the grantees and vendors and then use "programs" to tag is expense for reporting purposes. Are there other options that might be better?
Also, for those who also issue grants, how do you record the accounting for it for your org? For example, if we issued a $3M grant in 2021 for 3 years ($1M per year), we would book the grant payable in 2021 since that is the year the grant agreement was executed with the grantee.
Question: In Year 1 (2021) when the $3M is booked as a liability (grants payable) do you expense the full 3 yrs in 2021 or $1M over each of the 3 years? If the latter, what is the debit account for the credit against the grants payable?
Thanks!
