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Grant income coming in and going out - reconciliation problems

#1

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?

thanks.

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#2

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

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