 In this presentation, we're going to record a transaction related to restricted government grants in our not-for-profit organization. Get ready, because here we go with zero. Here we are in our not-for-profit organization dashboard. We're going to start off by going over to our Excel worksheet to see what our objective will be. We're currently on the fourth tab, tab number four in our Excel worksheet, and we're going to have a grant here. If I go over to the description on the left-hand side, it says here we have the fund drive that we got cash in, then we got pledges, and then we've got government grant to be used for education. So it's going to be government grant money that we have to use for a specific purpose, and therefore that means it's going to be a restricted item. So the transaction, the accounts that will be affected, one cash, cash is going to go up because we got government grants. The second is going to be contributions, but it's going to be restricted, a restricted contribution, because there's been a restriction on how we can use the money. So there's going to be a restriction on it. If we go then take a look at our accounts, then of course again, cash going up, cash increases, the other side being in kind of like the revenue account. Revenue is going up, and I mean revenue for a not-for-profit, basically donations. However, there's a restriction on it, therefore it's in a restricted item. So here the restricted items are going to be in two separate accounts because that's our chart of accounts, where we have to have two accounts to reflect that. However, when we go on over to our statement of activities, which is kind of like our income statement, then we can say contributions and break it out between the items with restrictions and without restrictions in a column type of format. So that's going to be our objective as we go on. We need to enter the transactions, we need to affect these two accounts, and we want to be able to populate this on the financial statements so that we can break out that information. Now we're also going to want, I know I'm scrolling around here, I'm just like, where are you going here? I don't know, I'm going to go back down. We also would like with these restricted items to now be breaking them out since we have more than one restricted item. So we might want to track then, of course, what are the kinds of restricted items, and we'll take a look at how to do that as well using our tracking features within zero. All right, so let's go back to zero. And so we're going to enter this transaction, our cash has been received so we can increase the cash account or have the cash received amount. But before we do that, I want to add another restricted items is going to be a government grant for education restriction. So I'm going to go to the drop down up top, we're going to go to the settings, let's go into the settings. And then we want to go into the advanced settings, which are at the bottom where it says looking for advanced settings. And we say yes, because that's I'm assuming they want us to click there for looking for them, which they do. And we're going to go then into the tracking category. So we're going to go into the tracking category and the advanced settings. And then in the restricted items on the second column, we have the unrestricted and the restricted. So we're going to go to the restricted items. And we're going to add a category down here and it's going to be I'm going to call it. I go grants and then education. So go grants education. So then I'm going to say save. And there it is. So that looks good. So now we have another category that we can then use for our transaction. So then let's go back up to the plus button. And I'm going to go down and say that we want to have a receive money. So money's coming in. So we're going to go into the receive money. And we're going to put it from the checking account. So remember, if you have multiple types of things you want to combine together, you might put it into the clearing account and then deposit it in a group if you need to. But I'm just going to put this directly into the checking account here. So I'm going to put it into the checking account and say next. And then we have and then we're going to say it's from, I'm going to say gov one. So the government one is going to be who we got it from. That's going to be our new contact. And then we'll say this happens on the fourth. So let's bring this on out to or back to in my case to the fourth of January. And then we're going to have an item down below. Now I'm going to select a new item because this isn't a standard type of donation. And I might want it going to a different account. So for the. So let's have a new item, select the dropdown. We're going to say new item then. And then we're going to have a code, which I'm going to call government grants. And then I'm going to copy that. I'm going to copy that, put that in the item name as well. Unit price is not going to be specific, not standardized. So I'll keep that blank. And then we could put it into the sales account for the restricted items. However, we might want to break it out. So we might want to break it out. Now what you want to be careful of is that you don't want to break out basically every government grant from every different government. You do not want to have multiple income statement accounts for each basically source of income. However, if you have multiple, you know, government grants, you might want to put out that this is a government grant and maybe government and state grants. Again, not the specific agencies or whatever because then you might have, that would be too much detail. But you might, it might be useful on the line item on the income statement to just say, hey, yeah, this is money that came from the government versus restricted items that came from somewhere, from somewhere else, multiple governments. Okay, so you want to be careful again, not to put too many, too many items on the income statement because you could run other reports for it and that's what you would typically want to do. But I'm going to add another one here for 104020. I'm going to call it 4020 is the number. And then the account type, we're going to say it's an income account which they're going to say is sales is what we've been putting in. That's just a type of account. So we'll keep that custom here. And then we're going to put it in the account of government grants. That's going to be the name of the account. It's going to be an income type of account on the income statement. Let's go ahead and say save then. So save, no tax affected, nothing. We're not going to purchase the item obviously or track inventory for it. So then we're going to say save and there we have it. And then we're going to put the unit price. We're going to say it's for... Let's go back to the journal entry. Where's my journal entry? Scrolling back up. It's the 15900. So we'll put here then the price of 15900. And then we have the restricted, unrestricted and restricted. So we're going to be going into the restricted column. It's going to be restricted. And now we're going to say it's the government grants. So we're going to say government grants. So restricted government grants. Now notice we probably should and I'll take a look at this later in the unrestricted. If we're not going to apply it to anything, we should basically put it to an item that says none or not selected. So I'm going to actually add an item here that says none. So it goes into the none category possibly later. And that might help us out. That will help us out with our sorting. So just keep that in mind. That's for the future. But in this case, that's what we have at this point in time. And so what's this going to do? It's going to increase the cash by the 159,000. The other side then going to revenue, but being driven by this item to the revenue account of government grants, which we just have set up. And it's also going to be broken out in more detail by the restricted items of the government grant. So it's going to be in the restricted column. And then we have the subcategory of the restricted column being the government grants. All right. So let's go ahead and save that and then check it out with the neat reporting stuff that Zero has here with the custom reporting. It's green. So that means it makes me feel like it was done right. So I'm not even going to read it. I'm just going to go over and go to our reports here. So we're going to be opening up. Let's open up the balance sheet report. And balance sheet report. So with the dates going out to 2020, so let's bring this on out to 2020, hitting the drop down January 31st, 2020. And then we'll update that report. I think I messed up. Hold on a sec. January, that's still December, January 31st, and update that report. And so there we have that. If we go into the cash account, selecting the cash account, it should be increasing because we got a lot more from this government grant scrolling down. Then there it is. So the government grant, the 159. Then I'm going to go back up top. We're going to go back to the balance sheet. The other side is going to be in the equity section on the balance sheet because it's a temporary item or a temporary account being an income account. So it's going to be down here within the equity section. Let's go up top and let's right click on this tab up top. I'm going to right click on this tab and duplicate it. So now we get the balance sheet on the right. We're going to go back to the left. Let's open up the standard income statement first. Accounting drop down. Let's open up that standard income statement. So here's going to be our income statement. It's going to be for the year 2020, for the year 2020. I'm going to hold down control and scroll up just a bit to bring it up to that 125%. So it's like really big. Now the report's really big. And so there we have it. So here we have the grants, government grants at the 159. Note again, we added another account to it. So we could have put it basically into restricted income, but we broke it out. It might be something that would be useful to the board to break out grants and maybe have another line item for government grants and state grants. That might be good for decision making. But again, you don't want it from specific government agencies or something like that because that's going to be too much detail, you know, right? So that's what you're going to want. So then we're going to have rents down below and there we have it. And there's our net income, that net income. If we go back over to the balance sheet, 156.700 is going to be on the balance sheet down below the 156.700. Back to the income statement to the left. We're now going to go onto the tab up top, right click on that tab and duplicate that tab. So now we have the balance sheet. We have the income statement. Let's go back to the report to the left. And now I'm going to open up the custom income statement, the worksheet income statement that we made last time. So I'm going to select the accounting dropdown and I put it into the special income statement here. If you made it last time, you could also go into reports and it's going to be in the custom reports here because we customized it. We made it special. So it's a custom report. There's the income statement. You could find it right there. We put the little star. That's what puts it in the dropdown for us. So it's nice and easy. So how did we make this thing? We used the edit layout to add columns, which is really a great tool to have. Note you can also filter this report. We used the filtering items to filter this report and we filtered the reports using the classes. I'm going to close this back up. You could see this more easily on the income statement. If I go back to the income statement, we're basically filtering this report by the unrestricted and restricted items. And then we added columns based on these filtering items. And these include these items for the unrestricted and these items for the restricted. This one now including the government grants. So then if I close this back up and we go back to the worksheet, income statement worksheet, now we can see that we have it broken out in the government grants and that item should pull up. Well, it's not pulling up right now on the restricted items. That's why, because we added another item. So we got to edit this report. This over here should be pulling up right here, you would think. So let's go to the edit down here, edit layout below, and we added a whole nother restricted item. So now we got to put that in here. And once we do it, it'll show up all the time. We won't have to do this all the time. But we're going to then go and say it went into the restricted column. And right now we only have time checked off, we want to check off the government grants as well. Government grants in time. And there we have it. And then I'm going to say done. And our report then should reflect that government grant. I'm pretty confident it's going to do so. So there it is. The government grant is in the restricted, is the restricted column. So this is the total restricted column at this point in time. And so now what we want to, what we can think about now is basically could we run another report to tie out to the restricted column. So we have this item, this worksheet that has these two restricted items. We might want more detail about those restricted items. So we can do another report using an editing layout, which will basically be tracking the restricted items. And so that'll take a little bit more time. I want to make another custom report to basically support this item here. And then later on we'll do a similar report after we go to the expenses with the unrestricted items. So right now you'll note that in terms of these reports, we have this report being a worksheet because it's going to show the unrestricted unassigned and we'll deal with those at a later time. So we'll deal with those and assigning that out, especially this 35,800, which we want to assign to the proper unrestricted categories. So we will assign that out. This is helpful to us at this point in time. Then we'll make a report that we can basically only have these three columns. Then matching the format that we would like to give in a more simplified format that we can give to the board, right? We'd like to give something to the board that doesn't include this mess, right? At least not on page one, right? And we'd like to give them something that's more like this, where we have the three columns. Here's the income statement broken out with restrictions and without restrictions. And we don't have all the detail for the restricted and unrestricted items. Then when they ask more questions about that, then we can get into the more detail, which in Excel would look something like this. Here's the expenses broken out by the unrestricted items. And we can get into more detail in those schedules. So this report will look like that. I can make another report, which will just have these three columns that will be used to help us to make our finalized report for that. Then we can have a report that'll break out the unrestricted items, which will line up to the total in this report. It'll just give more detail of the categories within it. And then another report that'll give us more detail of the category on the unrestricted items. So that's what we'll do in future presentations next time. Let's see if we can make a report that will track the current restricted items that we have with another custom report next time. That's going to be it for now. Let's get out of here.