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jrsellers09
Level 1

Non-Profit Invoice (Pledge) and Billable Expense Setup

Hello all!  I need some assistance making sure I set this up correctly.  First of all we are a non-profit and I have that set up in settings.

 

We use Projects and Invoicing as a way to mark items as "billable" to a project, which then creates a Pledge in QBO.  All of that is working correctly, however I noticed this month that our budgets vs actuals are now showing negative numbers and the revenue is not being included in the P&L.

 

Here is my setup (Names changed slightly for security):

SAVINGS Account (Deposit of Actual Funds - Linked to Bank)

50000 - Government Funding (Revenue / Nonprofit Revenue - Tracks Funding Coming in From Deposits)

60400 - Equipment Expense (Expenditure / Other Business Expense - Tracks by category)

60500 - Hardware Expense (Expenditure / Other Business Expense - Tracks by category)

 

Basically what we were doing was paying for a item (i.e., expense) and categorizing it (i.e. - 60400).  That way later on we could identify what we were spending on things such as equipment, hardware, etc.  I would mark the item as billable.  At the end of the month I would create an invoice and send it to the government.  We then receive the payment in our savings account and QBO would mark the item as Paid.

 

The problem I have is that the revenue is showing up in the Chart of Accounts under Savings, however it doesn't also show up under 50000 - Government Funding.  This is causing a discrepancy in the P&L and the Budgets vs Actual Report.  I have tried to go in a check the box "Track Billable Expenditures as Revenue" but that doesn't make the items on the invoice that were received as a payment in the Savings account also show up under Government Funding.  It also places a negative number in the 60500 account, which doesn't give me a true accounting of what was actually spent in that expenditure category.

 

Any help would be appreciated!

 

1 Comment 1
Rustler
Level 15

Non-Profit Invoice (Pledge) and Billable Expense Setup

After you marked the settings to track billable expenses as income, did you then open the chart of accounts and edit the income account you want it to post to?

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