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!
