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Grant income coming in and going out - reconciliation problems


Hello, I’m struggling to reconcile a grant income amount correctly.

We have ‘x’ amount coming in as a lump some which was granted to our non-profit.

Internally, that money needs to be allocated a number of ways. We rent out studios and part of the grant is to subsidise that rent for some people - effectively the grant covers the rent.

So, what is the best way to log the grant and then allocate it so we know how we have spent it?

I figure we could invoice ourselves for studio space, but is that a bit weird? Is there a cleaner way to allocate or split how it is used internally?




You can do let grant sit on balance sheet as liability when you get it first time then journal it to several heads or open a virtual grand bank account by recording inter bank transfer from main bank account and use that virtual grant account to record payment