LCUUF
Level 3
‎March 21, 2025 02:04 PM

Posting a Pledge - Defining the appropriate Product and Service

We are a church and have and never have Invoicing except to handle Pledges - so in setting up QBO I am making the A/R account "Pledges".

 

I have set up Donors, Vendors, Chart of Accounts, and Classes.

 

My question is about Products and Services, because that drop-down must be entered to post an Invoice.

I have A/R in the Balance Sheet and Non-Profit Income:Pledge (Pledge is a sub-account) under the P&L (Incomes).

 

When I create a Product and Service called Pledge, what do I use for the "Income Account"??? 

 

This is confusing for me because the Invoice is a 'promise to pay', so I would have thought the Account to be used would be A/R...but I suspect that I want to use the above: Non-Profit Income:Pledge

 

Am I right?

 

Not expecting a class on Accounting here. 

 

I really want to get this right.  Thank you.

Solved
Reply Join the conversation
Rainflurry
Level 15
‎March 21, 2025 04:15 PM

Payments

@LCUUF 

 

Anytime you create an invoice in QB, it automatically posts the invoice total to A/R with a corresponding amount to whatever account you choose under the 'Income account' for the product/service on the invoice.  Those are the two sides of the debit/credit accounting entry.  So, yes, you want to select your 'Non-Profit Income:Pledge' as the income account on your product/service.  That way, when you create an invoice for, let's say $100 pledge, your A/R will increase by $100 and your income will increase by $100.  

View solution in original post

Reply Join the conversation
LCUUF
Level 3
‎March 21, 2025 04:20 PM

Payments

I LOVE this website and all the help.  Thank you!

Reply Join the conversation