Many not-for-profit organisations receive grants for particular projects on a regular basis. These grants may be received in advance of the actual period to which they apply, and are recorded in your accounting system by receiving them into a liability account. The grants are then allocated to an income account each month via journal entry.
Calxa has no built-in method to automatically set the cashflow for grants received in advance. This help note will describe the Budget set up to handle this for cashflow purposes.
Budget Entries
Enter a monthly Income budget for the grant amount you will journal monthly.
Enter the same monthly budget for the Grants Received in Advance liability account which is -100% of the income account budget. This will reflect the debit side of the monthly income journal.
Adjust the budget in the Grants Received in Advance liability account for the grant amounts you expect to receive (excluding GST), in the months you expect to receive them.
So your Liability account Budget line will look like this for a $120,000 per year grant, paid in two instalments of $60,000:
In Cashflow Settings:
Set the Cashflow Type for the Grants Income account to Profile and 100% in current period
Set the Cashflow Type for the Grants Received in advance account to Profile and 100% in current period (to match Income account).
For the Cashflow Forecast you could create a Summary only, Income header account in Calxa Account Trees allocating both the Income and Liability accounts to the Income header to get a net balance for forecasting purposes.