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horn8287
May 4, 2021
Question

QBO for Nonprofits - Billing vendors for services rendered

  • May 4, 2021
  • 2 replies
  • 0 views

I have a non-profit configured QBO account that shows "Customers" as "Donors". We'd like to use the invoicing feature to bill other organizations that we provide programs for. How can we create a "Customer" or "Vendor" object that we can specify as "organizations we bill" as opposed to lumping them in with the Donors? 

2 replies

M
mv32
May 5, 2021

I'll help you add the group that you bill, @horn8287. 

 

You can create a customer and name it as the organization that you bill. You can do the same when creating a vendor that you're receiving a bill from.

 

Let me show you how:

  1. Go to the Sales menu and then select Customers/Donors.
  2. Click New Customer.
  3. In the Company field, enter the organization that your non-profit organization bills.
  4. Enter other details (optional).
  5. Click Save.

Vendor Setup

 

You can then bill them using their organization's name by creating an invoice/pledge. I've added an article as your reference: How to record an invoice or charitable contributions.

 

Let me know if there's anything that you need with adding customers and vendors. I'm always here to assist. 

    H
    horn8287Author
    May 5, 2021

    Hey @mv32 - thanks for your reply! 

     

    We're using QBO for Non profits, so our primary "customer" type is "Donor", not Customer. When I open the Sales menu, it shows "Donors".

     

    I'd like to be able to differentiate between who is a Donor (someone giving us money for no reason other than supporting our mission) and a Customer (someone who has hired us to provide programs/services) or Vendor (someone we are paying to provide services).

     

    What is the best way to do this? I imagine this is a common scenario for non-profits who receive payment from other organizations.  

     

     

    RenjolynC
    RenjolynC
    May 5, 2021

    Thanks for your prompt reply, horn8287.

     

    I have the option to help you differentiate your customers.

     

    You can set up a donor type for grouping customers into different segments.

     

    Here's how:

     

    1. Go to Sales > Donors.
    2. Click the Donor types button beside the New donors button.
    3. Select New donor type and enter the donor type.
    4. Hit Save.

    Here's a sample screenshot for a visual reference:

     

     

    Once done, you can add the donor type by following these steps:

     

    1. Go back to the Donors page and select the donor's name.
    2. Click the Edit button.
    3. In the Donor Information window, go to the Additional Info tab.
    4. Set the donor type from the drop-down list.
    5. Hit Save.

    I've got this sample screenshot:

     

     

    To learn about about the donor types, you can read this article: Set up and assign customer types in QuickBooks Online.

     

    If you require any additional questions or other concerns, please let me know in your reply. Have a great day!

    L
    LizGS
    January 2, 2022

    I have the exact same issue as the person who posted this question.  My organization is a nonprofit, so I configured Quickbooks online for a nonprofit, which means instead of "customer" it shows "donors."  The suggestions in this string don't solve the problem.  I want to send an invoice an organization for whom we are providing services.  "Invoice" is no longer available.  When I tried to create a "pledge" it wouldn't let me put the unpaid amount into accounts receivable.  Perhaps I have to do a journal entry?  I'm not that savy with QBO.  PLease help. 

    AlexV
    AlexV
    January 2, 2022

    Hi LizGS!

     

    Thanks for joining this thread. Allow me to help you in creating a pledge.

     

    Invoice and pledge are exactly the same. We create a pledge the same way we create an invoice. It automatically increases your Accounts Receivable balance when you save it.

     

    You don't need a journal entry. Just make sure to create a service or non-inventory item that you'll need to select when creating a pledge. Please follow the steps in this article on how to track funds: Track funds you receive from donors in QuickBooks Online.

     

    I also added some links if you need help in running financial reports as well as how to track funds in QuickBooks Online:

     

    Please know that you're always welcome to post again in QuickBooks Community. Have a good day ahead.

    J
    JoeAlouf
    August 1, 2023

    For intuit to say that "invoice and a pledge are exactly the same thing" demonstrates a lack of not-for-profit accounting knowledge.  The two are distinctly different.  For QBO to treat them interchangeably, is creating a lot of issue for us users. 

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