Question

Non-Profit Private High School

Forum|Forum|5 years ago
January 26, 2021
7 replies
86 views

Setting up a nonprofit private high school in QBO. Im having some difficulty figuring out the invoicing and AR side. Scenario: They invoice each family for tuition and fees. The child also gets a subsidy based on the Parish they belong. Typically I woulf set up a discount account for this; however, they need to track which child gets the discount per parish so they can invoice the Parish for the money. The same issue applies with named scholarships as well.

They currently invoice and when they apply the discount it debits the AR account for parish subsidy. Then they create an invoice outside of accounting software. As you can imagine, this causes problems with tracking of payments and what is unpaid.

Anyone have experience in this arena who is willing to provide some guidance?

QuickBooks Online

Kristine Mae

Moderator

I got you, StaciW. I'm here to guide you in resolving your concern.

First, you can add a discount when creating an invoice in QuickBooks Online. This way, you can add the subsidy for each student.

Next, we'll pull up the Open Invoices report. It helps us keep track of the unpaid transactions and shows the total balance. Here's how:

Click Reports.
Enter Open invoices in the Find report by name field.

Then, let's pull up the Profit and Loss report, so we'll know which parish that you need to bill. Here's how:

Click Reports.
Select Profit and Loss.
Select the discount account and click the amount.

You can now see the invoices that have discounts. From there, we can check the student's name, and we'll know the parish they belong to.

Once done taking notes, you can create the invoice for each parish.

You can also open other sales reports, like Transaction List by Customer/Donor, so you can see the transaction per student. You can customize the report so you can focus on the details that matter to you.

Reach out to us if you have other concerns. Don't hesitate to click the Reply button below. Take care!

S

StaciWAuthor

I dont think that is a very efficient solution. They have 6 different parishes at a minimum and they also have about 20 different named scholarships that also will need to be tracked and invoiced. This is all in addition to Ed Choice and JPSN government funding.

I thought about adding a discount account for parish subsidy and use class for each parish. Then when they invoice each student it would go to the contra income account and when they invoice the parish it would offset the contra income account.. Do you think this would work?

R

Rea_M

Level 10

Thanks for getting back to us here in the Community, @StaciW.

Adding a discount account for parish subsidy and use class for each parish would work based on your scenario above. However, utilizing both the location and class tracking features in QuickBooks Online (QBO) will let you track your income, expenses, or profitability by business segment efficiently. Then, you're able to easily categorize your data for each parish.

Whenever you're ready, let's go to the Account and settings page to activate the features. Here's how:

Go to the Gear icon.
Select Account and settings.
Go to the Advanced menu.
Click anywhere in the Categories section to pull up its details.
Enable both the Track classes and Track locations features.
Select Save.

I've attached a screenshot below that shows the last four steps.

After that, you're set to add your new class and location lists through the Lists page. Then, track your transactions accordingly.

Additionally, here are some of the helpful articles to learn more about class and location tracking features in QBO:

Let me know if you have other concerns about managing non-profit transactions and class tracking in QuickBooks. I'm just around to help. Take care always.

I

IrinaA

Hi!!!

I am in the same situation as you last year and I was wondering if you please can help me! I work for a Catholic nonprofit private school and I am so confused. Nothing is making sense in QBO. I would really appreciate your help! Thank you!

AlcaeusF

Level 14

Hi @IrinaA,

I appreciate you for reaching out to us here in the Community. Allow me to chime in and help you handle transactions for a non-profit private school in QuickBooks Online.

The online version is a good choice for organizations that prefer cloud-based software. There are several ways you can enter transactions, depending on what works best for you.

If you have the same situation with the user who started the thread, I recommend following the suggestions from my colleagues. You can consider using the Discount feature and track classes for more detailed reporting.

Alternatively, you can enter your transactions using journal entries. You can use this feature to balance your books in specific ways.

It allows users to debit and credit accounts to handle different situations. Though, I recommend seeking additional guidance from an accountant for the accounts to affect.

You can also use different AR accounts when performing the process. Check out this link for further guidance in entering journal entries: Create a journal entry in QuickBooks Online.

For additional reference, I've attached a link you can use to undo a journal entry to update and make corrections: Reverse or delete a journal entry in QuickBooks Online.

Feel free to hit that Reply button if you have additional questions about handling non-profit transactions in QBO. Have a great day ahead.

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