I have recently been awarded a government grant that is paid as a part reimbursement AFTER I buy equipment. How do I log this on quickfile please? Do I need to add the awarding body and a client or supplier, or do I just input it as a “money in” transaction?
Journal it and do the double entry as per @FaradayKeynes post above.
This is a sample of a grant I was awarded for furniture and other things. I’ve only shown the 2 entries here, but I have about 6 in total as it was for a number of different things (computer equipment etc.)
You should have your original purchase for the amount, tagged to the relevant nominal code.
This above purchase was for £328.17, of which 50% was reimbursed (excluding VAT).
This effectively does:
Dr 0040 Furniture and Fixtures [Assets] - £328.17
Cr 1200 Bank - £328.17
This would be the double entry, automatically done by the purchase you raise - £328.17 comes from my bank and into the furniture and fixtures nominal code.
You then raise a journal (as shown in previous post) to effectively reverse it, therefore ‘lowering’ the amount you paid for the furniture, and increasing your bank. As I said, my grant was for 50% excluding VAT, which is £136.74, so the journal would be:
Dr 1200 Bank - £136.74
Cr 0040 Furniture and Fixtures [Assets] - £136.74
Note: I should add that VAT is only 0% in the screenshot above as I’m not VAT registered.
Hello, thank you for your help. I’m trying to get my head round why the totals are different in the first example you gave and the same in the second example? I bought a laptop for £184.95 and I have logged that as a purchase. I received funding back for 58.33, so have just been to “create journal”, selected the date the funding went into my account, selected current account 1200, called it “laptop” and put in a debit of £58.33 and then a credit from the “office equipment” nominal account of £58.33 funding that was received. Does that sound right or should the first figure in teh journal, the debit, have been £184.95?
Thanks in advance for your help, it is much appreciated.
The only reason my numbers were different in the first post is:
So, the funding I received were for a number of items (furniture, equipment, software etc), but in my main example I’ve only shown the furniture element.