Record program income in Receivables as a non-AR cash payment and post.
Post the revenue to the program income posting project, revenue account, and
funding source. If program income is split between federal and state funding
sources, split the program income between the funding sources proportional based
on funding rules.
Specify distributions required to reduce federal grant budget as
follows:
- Debit: Deductive expense account, expense project and grant. These distributions increase
the total obligations, resulting in less funding source amounts or
budget amounts for the grant from program income.
- Credit: Use the same finance structure as the debit, but create the finance structure with
a blank project and a blank funding source. The GL journal entry is
offset, which results in a net amount of zero.