funders, grants, amounts owing
I work for a non profit and one of our funders is also the organization we use to process payroll.
Normally we pay them what we owe monthly for payroll and at some point in the year they give us our grant. Yes it's a bit redundant to have them pay us and then us pay them back but it's made the accounting easier.
My place owed for a few months of payroll when it came time for them to give us our grant and instead of the full amount they withheld what was owing and paid us the remainder.
How do I record this in quickbooks since I have to show that they did overall "give" us the correct amount but I didn't actually deposit the full amount and how do I mark those bills they retained the funding for as "paid"?
Since that portion of the money never actually went through our hands I'm unclear how to account for it.