Hello all..
We receive a $75000 grant each year but they require a monthly invoice to pay us our monthly payment. I booked the whole amount when we were awarded the grant. However, when I set up a recurring invoice, it increases the total 'income' for the grant. How do I make the invoices and not increase the total amount awarded?
Thanks!
So I have 2 revenue accounts for grants (foundations or government) where all revenue is booked. I keep track of the individual grants through 'Projects'.
I have a 'Product' set up as 'foundation grants' and one as 'government grants'. When I booked this $75000 grant it was to the specific client and under the project attached to that as a 'government grant' product. These products all go into the main Receivables account.
When I create an invoice, in order for it to be attached to the same client/project and the same grant category I use the same 'product' but this is what is creating the issue. I don't know how to do this, hope I'm making sense in my explanation.
Yep, that makes sense. So, when you originally recorded the grant, you have $75K in grant revenue on your P&L and the offsetting $75K in accounts receivable on your balance sheet, correct?
If so, then IMO, the easiest way to handle this is to create a $6,250 credit memo each month dated the same day as you issue the invoice to the grantor. Use the same Government Grant product on the credit memo that you used on the original invoice and will use on each monthly invoice. Immediately after creating the credit memo, apply it to the outstanding receivable balance using New > Receive payment. The purpose of the credit memo is to reduce A/R and the $75K in grant revenue by $6,250 so that the monthly invoice doesn't add to your totals. After you receive payment on the monthly invoice, your A/R balance should be reduced by $6,250 and your revenue should always remain at the original $75K.
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