Recording a spendable to Deferred Revenue account
Hi, I'm trying to find a way to record a funds 2024 spendable to another fund as Deferred Revenue. We've been granted XXX dollars from this year to spend on an IT upgrade that will happen in 2025. To keep our budget balanced, I would like to defer the revenue until next year when the expense will take place.
Any suggestions? Thank you in advance.
Brenda Chamberlain
Comments
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We did have this situation come up before the end of our FYE23 - donor wanted portion of donated dollars to go to fund current year spendable (FYE23) and a portion to go to the next fiscal year spendable (FYE24). I'd assumed that there would be a deferred revenue account I could use, but Foundant advised me to do the following:
Received donation to FYE23, posting with FYE23 donation date, checking Apply to Spendable, description referencing FYE24
JE'd transfer of FYE24 spendable donation (Net Assets - Spendable Balance debit/Net Assets - Fund Balance credit) with FYE23 post date of donation receipt date
JE'd transfer of FYE24 spendable donation (Net Assets - Fund Balance debit/Net Assets - Spendable Balance credit) with 1st day of FYE24 post date
Much more round about than what I've done before in other accounting systems, but did ultimately get the spendable into the correct fiscal year.
Hope that is helpful!
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Thank you for your input!
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