Tracking Grants using accrual accounting

Pam Meyers

 We are changing from cash method to accrual method of tracking grant awards in our Accounting Dept. What is the best way to handle that in RE (when we normally record only the cash donations), without confusing our reports? Enter the Grant as a Pledge when awarded? Then as a cash gift as the payments are received? What happens to standard reports when using Pledges and Cash gifts?

 Environmental non profit

Mary McConne

Pam Meyers:

 We are changing from cash method to accrual method of tracking grant awards in our Accounting Dept. What is the best way to handle that in RE (when we normally record only the cash donations), without confusing our reports? Enter the Grant as a Pledge when awarded? Then as a cash gift as the payments are received? What happens to standard reports when using Pledges and Cash gifts?

 Environmental non profit

Use a cash gift type, but apply the cash to the grantor's open pledge. The cash is then a reduction of receivables and not double counted as revenue. If you are integrated with FE the accounting entries are determined by the GL codes set up on your RE funds

Mary McConne

Pam Meyers:

 We are changing from cash method to accrual method of tracking grant awards in our Accounting Dept. What is the best way to handle that in RE (when we normally record only the cash donations), without confusing our reports? Enter the Grant as a Pledge when awarded? Then as a cash gift as the payments are received? What happens to standard reports when using Pledges and Cash gifts?

 Environmental non profit

Use a cash gift type, but apply the cash to the grantor's open pledge. The cash is then a reduction of receivables and not double counted as revenue. If you are integrated with FE the accounting entries are determined by the GL codes set up on your RE funds On RE reports you have to apply gift type filters to get at accrued revenue ( cash and pledge) or you cash received ( cash and pay-cash)

Pam Meyers

Mary McConnel:
Use a cash gift type, but apply the cash to the grantor's open pledge. The cash is then a reduction of receivables and not double counted as revenue. If you are integrated with FE the accounting entries are determined by the GL codes set up on your RE funds On RE reports you have to apply gift type filters to get at accrued revenue ( cash and pledge) or you cash received ( cash and pay-cash)

 Thanks! Unfortunately, our accounting is on a completely separate system, not integrated. But it looks like I'll be able to use your suggestion of tracking with the gift type. Thanks for your help.