 In this presentation, we will enter a pledge into our accounting system. Let's get into it. We're into it. QuickBooks online. Here we are in our not-for-profit dashboard. We're going to go over to Excel to take a look at our objectives. So we're going to be in Excel. We're on the third tab. On the third tab in F9, we have our transaction, our transaction being for a pledge. The pledge in essence, increasing the receivable, which is a balance sheet account and the other side going to income, but we're going to put it to a restricted income for the time restriction. So we have the accounts receivable or contributions receivable. Then we have the income down below. Notice the income is in a different account than the one we've been going to before, which is the one without restrictions. Now we need two different accounts to show that in just a standard trial balance. However, when we convert this to the income statement or the statement of activities, then we can break out between the columns for the restricted and unrestricted. So we've added like a dimension to it, I would say. And we're going to do that in our system with the use of classes. So the classes are going to help us to do that. Also we set up projects so that we can also track the actual projects. And so the restricted items, we're going to use projects, in other words, to track the restricted items in more detail as well to be able to run reports based on those individual products or tracking those individual restricted items. Okay. So let's go back on over. Now that we have those set up and we've set those up in the past, we set up classes in the past. We set up the projects in the past. So now we're going to go back on over and we set up sub sub accounts in the past. So take a look at the prior presentation. If you haven't done that, or it's going to be a little bit more difficult here. So then we're going to go back over. We're going to go to the plus button up top. We're going to then be going to our invoice. Now our invoice is going to be our pledge form. We changed the name of the pledge form. It'll still be called an invoice here because it acts in a similar fashion as an invoice would for a for profit organization. So I'm going to say this is a pleasure and this is going to be a new customer here. I'm just going to say pleasure one. This is our first pleasure customer. So we're just going to call it pleasure one here. That's our customer. And when we say customer, obviously we mean pleasure here. So it's going to be a pleasure. And then I am going to set up the details this time. I want to set up the details for it mainly for our practice problem. Note that obviously if this was a pleasure, we would want their address and all that kind of stuff there. And so we could send them our newsletter. But I want to set up the sub customer here. So by our default kind of item is that we're going to go down and set them up as a sub customer if they're a pleasure. And then we're going to we're going to select the sub customer of the restricted time. So that'll put it that'll allow us to track it in that kind of area. That job or that sub customer, which will also bring it over to the project. And then I want to make sure that we change this as well from not to build with the parent, but build this customer. That means we'll still be able to build this customer, the pledge customer and be able to track it within the job or project that we set up by using the sub customer and the project fields to do that. So now we're going to say save. So I'll save this. So there we have that. I'm going to say tab. If we have the email address, of course, we could set up the email address here. And then we have the term. So when do we expect the pledge to be to be due by? When are they going to be basically paying it by? I'm going to pick the invoice date as 010320. And then the term is 30 days. So net 30 means it would be due. We would expect payment in other words. We expect to collect the pledge by February 2nd in this case. Now then we're going to go down and we're going to set up a new item. So I'm going to set the date as the same date, which is going to be 010320. And then we're going to set up a new item. So I'm going to call the item a pledge. And now remember, an item is kind of like what we would use if we had products or server. It is what we would use if we had products or services that we would sell him, we would set up the item so that the population of the invoice will be as easy as possible. Same thing for the pledge here. We're going to say we want to set up the process of entering the invoice or the pledge form in such a way that anybody can fill it out. And therefore, we're going to set up the item. So next time the item will already be there. And that's all set up for them as well as the projects and the jobs. So we can give some instructions for that. And then they don't need to know what the effect on the financial statements are or how to set these things up in order to simply do the data input for the invoice or pledge form we have here. So I'm going to say tab and it's going to ask us to set up this pledge item. It's going to be a service item. So we're going to set it up as a service item. Now I'm going to copy the name. I'm going to say we want that name. I'm going to put that down here. Now I'm not going to put the class right now. You could put the class, but I'm not going to put it. I'm going to add the class as we go. But just realize that if you want to make this a little bit more easy for people to do the data input, you can't add the class as we go in. It'll then populate the class field for us. So then I'm going to go in the description. I'm going to paste this here and then I'm not going to put an amount because the pledge might be different every time. So I'm not going to put a pledge amount. If you have set pledge amounts that you that you are standardized, then you could, you know, put a pledge amount and you can make different pledges, pledge one, pledge two, pledge three and so on and so forth for different tiers of pledges if you so choose in an item type of format. But here we're just going to say it's an open pledge for whatever amount we want and then we'll populate that amount. Now it's not going to be going into the contributions unrestricted. It's going to be going into a restricted contributions. Therefore we're going to have to set up another account. Now note, you might say, hey, why don't I just set up an account called contributions and then break it out between restricted and unrestricted with the use of the classes. You could do that column by column and that would be fine. I still like setting them up as separate accounts and it's kind of like a double check figure to me. To me, I see it in a different account. That's going to help me to sort it basically two different ways. So when we go into a profit and loss by class then we will have it both set up by two different income accounts and two different columns. And that might be a little bit more muddy to see for people and you might want to do some formatting to group those things together. We could use classes, I mean sub accounts to be able to put those together if we want to present those reports to people outside. In other words, we can have a contribution parent account followed by an unrestricted and restricted and then collapse them in the parent account when we make external reports. But I like to have that double check. So I'm going to go back up top and I'm going to say I want to add a new account here and now we're going to set up a new account. It's going to be an income type of account, discount refunds, no, I'll say other primary income. And this second thing doesn't have a whole lot to do with anything really. I don't think it has any influence on almost anything. So don't worry too much about what you pick on the second detail type. And then we're going to say this is going to be contribution and then this time it's going to be restricted and then I'll see how I misspelled this contribution, contribution. Okay, so there it is. And this is what I need by the subcategory. If we wanted to be able to collapse the restricted and unrestricted, we could make a parent called something like contributions without restricted or unrestricted and then put the subcategories of restricted and unrestricted underneath it. And that allows us to collapse those columns when creating the profit and loss report. And that might be easier on the eyes for external reporting. So just keep that in mind. I won't do it here. I might do it later just to show us some formatting. And then we're going to say save and close. So there we have it and so that's all we need. I'm going to say save and close here. So there is that. So notice that populates pledge. Let's go pick up the rate now. The rate is going to be the amount. Let's go back to the left and scroll back up and we're going to be picking up then the 108, 108. All right. So that's what we want and the rate 108. And note you can imagine us doing this multiple different times. This would be the same kind of process for every pledge. We would put every pledge and put this in here. Although only this pledge would we actually have to set up the pledge item here and the account. So everything else we would have to do every time but then this item would just be a pledge and all you would do is populate the pledge format. And then we're going to set this to a class and this time we're going to say that this is going to be restricted. Okay, so what's this going to do? This is actually going to have a lot of effects here as we enter this form. Notice the data input is fairly easy but it has a lot of impacts on different things here. So what's going to happen is an invoice which if we were to view it here on the print, it will say a pledge because we added the pledge. Let's go ahead and do that. If I say print and I want to preview this and see what it would look like for the client or the pledger, here it is. And you'll note we changed the name up top to a pledge. So we got a pledge here. Okay, so we'll close this back out. So what's going to happen then? We know that it's an invoice or pledge. The accounts receivable account in essence is going to go up the balance sheet type of account, the receivable type of account. The other side is going to be income that's going to go up driven by this item. This item is pointing the income accounts to where it should go which is going to be the unrestricted contribution or the restricted, I'm sorry, restricted contributions because we're going to say there's a time restriction. So we have that. We also assigned it to a class which means it's going to go into the restricted class when we see the P&L by class in a separate column. And then when we want more detail about the types of restrictions per class there are we can then go to the jobs report or the projects report. And we should be able to find that information because we put it under the pledge or one in that project format. Let's go ahead and check it out. Let's say save and take a look at it. So we're going to say save here. We'll open up our favorite financials. So I'm going to close this out after we save it. I'm going to go then to the reports. We're going to open up that balance sheet and that income statement or that P&L profit and loss. So let's start off with the balance sheet. So we'll open up the balance sheet. We're going to be opening it for the year 2020. So I'm going to just make sure the dates are up here. I'm going to say 010120 to 123120. And there's going to be our balance sheet. Let's go ahead and right click on that balance sheet up top on the tab, duplicate it so we can get our balance sheet to the right, go back to the left. Then we're going to open up our income statement or profit and loss going back down to the reports and the open hamburger within the reports. We want the profit and loss, the P&L. Note we have the profit and loss by class and the profit and loss. Just note that you can make the profit and loss by class with the profit and loss. So let's just practice doing that. And if you're used to that, if you get used to that, then you might simply just use the profit and loss report. So in other words, if I open the profit and loss, then I'm going to change the dates. I'm going to make this 010120, 123120. Run that report and then scroll back up. And if you change this total column, total only to classes, then in essence you have the profit and loss by class if I run that report. So run that report, it doesn't change the title however, but you basically have the profit and loss by class here. So if I was to right click on this tab and duplicate it again, go back to the tab to the left, go back to the reports, and then if we were to open the profit and loss by class, just for comparison's sake, profit and loss by class, and then we'll change the dates up top again. And we'll change these from 010120 to 123120. We're gonna run that report. And then he says profit and loss by class here, but we got the restricted, unrestricted, the fundraising and so on and so forth. Right here, restricted, unrestricted, fundraising total being the 297.7 on the profit and loss and same with the profit and loss by class. So you can see those are in essence the same report, just the titles change and you can, so note on that. So now let's go back to the balance sheet and check out what we have thus far. So if we go back to the balance sheet, we've got the accounts receivable account has increased. Note, we called it over here, we called it contributions receivable. So pretty much the same thing if the name bugs you of the accounts receivable, you can go into the general ledger account and simply change it to contributions receivable, but in essence, same functioning of it. So that's gonna be the 108,000 in the accounts receivable. The other side went into income. So we're gonna have to go to the income statement for that. If we go into the income statement, basically income statement to buy class, we see the contributions in the 108. Notice it's in the restricted account and it's in the restricted column here if we look at this function. So again, note that you could put both of these items under contributions and then have a parent account. Also note that if you collapse this and were to give this to someone else and wanna just simply call it income, you could. Now income isn't really a not-for-profit term. So if you wanted a not-for-profit term, you'd still have to have this income account here when running the standard or general report because that's the account type. You can't really get rid of that. However, you could add a sub-account, a parent account, which would act similarly to this with the similar collapsing, simply called contributions and then collapse this and then have the breakout be up here, restricted and unrestricted as opposed to having it broken out down below in this format. So I'm gonna close the hamburger to the left and just note that this 197.7, of course, is also on the balance sheet. If we go on over to the balance sheet, we see the 197.7 here on the balance sheet. Going back to the profit and loss, profit and loss by class. Now we can also consider this in terms of projects. So if I go back to the tab to the left and then we wanna go down to our projects and say, let's take a look at our projects item. Unfortunately, we're not gonna be able to use the newer project feature in the way we would like. There might be some changes to the project feature. It's really designed for more of a job cost type of system. What we're always hoping is if we had that sub-customer, we would be able to apply it to here, even though you can typically only assign one customer to a project, but that's not the case at this point. There might be changes in the future, including possibly having multiple customers applied to the project or something. I know those things that people have been thinking about. So these project section may change, but that's okay. We could still do this with a P&L or our profit and loss reports. So let's go back up to our P&L report then our profit and loss report. And this is basically the same way that we would see it in the desktop version by using this other feature in terms of the jobs or the sub-customer. And we can also set it up as sub-classes if we chose to do that. So we still have options to look at this. So in any case, we have the classes here and then what we have on the classes you'll recall are these restricted items and the restricted and unrestricted. If we want to know the detail on the restricted then we could go back up top and we could select the dropdown and then I want to see it by customers. So if we go into it by customers and then run this report, so same kind of filtering but this time by customer, then you'll see we have these restricted item or restricted time and then we have the Pledger one which is the one item in it. So there's gonna be our information. Now we can restrict this other information using the filters. So if we wanted to filter this and just look at the once we want or the profit loss components that we want which is the restricted time, then we could go up top and we could say I would like to filter or customize this report. We wanna do so by customer and then within the customer field we'll select the dropdown and we wanna see all the restricted items and they're gonna have a restricted in front of it because we set these up with the sub account in there. So everything whether restricted, those are the ones that we want. Then I'm gonna say okay, run that report and then we'll be able to see our information for giving us the detail on the restricted item. So you can see that we can add then restricted time and we can add other types of restrictions in this format and get more detail on the types of restrictions if we have multiple different types of restrictions in this way. All right, now let's go back to our tab to the left. Go back to the tab to the left. We're gonna take a look at our reports now. Go back on down to the reports. We can also be looking at reports for people owing us money at this point in time so that we can work on collecting on that. If we go scroll on down, we've got the business overview in the reports. We're looking at who owes us money. So I'm gonna scroll on down to the customer balance detail report. Let's take a look at the customer balance detail report. Then I'm gonna close up the hamburger and then now we have the detailed report for the Fledger One. Notice it's under the category of restricted because we made it a job or a sub-customer but we still have Fledger One, which would be the name here that the customer or Fledger and then we've got the detail for the invoice so we can basically track who owes us money in that format. Of course, this item then ties out to what's on the balance sheet. If we go to the first tab, then we see that 108 in the balance sheet. Also, if we go back to the first tab over here, open up the hamburger and then if we go into the sales item on the left-hand side, we can then go into our customers and this will also give us an overview of who owes us money. So again, we're under the restricted time because we put it in that sub-category so we can group them in our reports in our profit and loss by customer but we have it broken out down here in the sub-customer as well. So that's gonna be it for now. Let's get out of here.