Grant Accounting tab
GL Account Select from the GL Accounts. This is the general ledger account number for the liability account that gets debited each time the grant is used to cover shared maintenance fees and purchased product charges. This account will be debited every time a grant is used to cover charges on an agency order. The credit side of this is to the A/R account to reduce agency A/R balances. If you want, you can create a GL account for Agency A/R and one for Pledges/Grants Pledged to record expected amounts from promised grants, or they can all just post to one A/R. How to record promised grants and pledges is determined by your food bank.
If using the P2 Accounting, JE transactions can be manually used to record the initial pledge and to record the receiving of the pledge payment.
The following 2 accounts are the debit and credit accounts for recording the promised Grant/Pledge .
To Record the initial pledge but not receipt of the money yet
Pledges A/R (or just A/R) xxx
Pledge/Grant Revenue xx
Asset (grant with or grant without restriction) account xxx
Equity Account xxx
Equity Account Select from the GL Accounts - the Equity Account is the general ledger account that this grant will post to. An Example of this would be a GL for Grant Revenue which will be credited when you record the pledged money. The credit side would be to A/R or grants/pledges A/R.
GL Asset Account Select from the GL Accounts the default debit account that will go against this asset account. An example would be Grants/Pledge A/R or just A/R depending on how your food bank wants to record promised grants. This account will be used manually at this time to recognize a pledge/grant promised and it is a debit account. Once the money is received from the Grantor, you can then manually create a GL transaction that will debit your bank/cash account and credit the grant/pledge A/R or A/R (reducing the amount "owed" to your food bank).
When you receive the payment for the pledge/grant
Cash xx
Grant/Pledge A/R (or just A/R) xx