How do I journal a Covid19 grant?

Summary

Money received as a grant or under the furlough scheme should be posted into your accounts using a Nominal Ledger journal.

More Information

You may wish to create some additional nominal centres for the posting e.g. Covid19 Grant or Furlough Scheme Income. We suggest the centres should be Profit & Loss - Overhead centres although you should seek advice from your accountant as they may suggest you treat the funds as Sales income.

If the funds are a loan and to be repaid you should create a Balance Sheet - Liability centre as opposed to a Profit & Loss centre.

Go to " Nominal Ledger Journal Entries".

• At "Entry mode", choose 'Cashbook'.
• The "Money in/out:" should be set to 'In'.
• Enter your bank nominal code into "Centre" on the highlighted line on the list.
• On the next line:
  • In the "Centre" column, enter the centre you wish to record the funds under.
  • In the "Date" column, enter the date you received the funds.
  • In the "Credit" column, enter the amount received.
  • In the "Comment" column, enter a suitable reference e.g. 'Covid19 Grant Received'.
• Press <Esc> and <Accept> to post the journal.

See also

• How do I create a nominal code?
• How do I Search for a Nominal Centre?
• Posting journals

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Keywords AND Misspellings

coronavirus, covid19, covid 19grant, income, funds, money received, cashbook, journal, nominal

Tags

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