 In this presentation, we will set up subcustomer and projects. The subcustomers and projects will help us to track the restricted items. So when we have restricted income, we could further break that down into their components with the use of these tools, the subcustomers and projects. Let's get into it with Intuit's QuickBooks Online. Here we are in our not for profit company dashboard. We're going to start off by going over to our Excel worksheet. Let's see what our objective will be in the Excel worksheet. We're currently in the third tab, third tab in the Excel worksheet. We're looking at this journal entry where we will have a pledge. So we're considering someone pledging us money. If they pledge us money, it's similar to an invoice as opposed to a sales receipt type of form that's going to drive this item. And we're going to be increasing the receivable. The other side going to contributions, which is like an income account. However, the income account, we're going to say is restricted here. So it's going to be a restricted item. So therefore, when I think about this in terms of a trial balance, I'm going to label that with two different names, restricted or an unrestricted or without donor restrictions and with donor restrictions. And so we have to label it in that format. However, when we see it on basically the income statement or the statement of activities, then we can break that out with two columns, that being two columns without restrictions and with restrictions. That's what we're going to do in QuickBooks Online with the class features. Now, we might further want to break this item out the restricted items out so we can track those restricted items in more detail if we have more than one of them and we can use a different function for that. And that was going to be the projects and the class tracking. So let's think about how we can do that with projects and class tracking. So I'm going to go back on over to QuickBooks here. So we'll go back over to QuickBooks. Now, first, we got to consider some terminology here because these terminologies can get a little bit confusing. When we're on QuickBooks desktop, we had something called jobs and so if I go over to the sales tab, I'm going to go to the sales tab. The jobs are typically you can think of them as as as they're called here kind of sub customers and they're often used for a job costing type of system or longer projects. So longer projects or jobs, which used to be called jobs, which would be set up basically as a sub customer. And then when they moved it over to QuickBooks Online, they changed the term from jobs to basically sub customers. So now we have sub customers, which are basically equivalent to jobs on QuickBooks desktop. And then we also have this new feature called projects, which is a little bit more detailed, a little bit more flexibility within the tracking within the projects. Okay, so how could we use this work? We're going to use this to help us track our information for the restricted items. So what I'm going to do then is I'm going to create first a customer. I'm going to create a customer that's just simply going to be called it's just simply going to be called restricted items for the time restriction that we're going to be dealing with first. So what I'm going to do is I'm going to say I need a new customer on go back up top. I'll say new customer and I'm just going to make the new customer a restricted and I'm going to say time. So it's more like a category than a customer that I'm using here. So restricted time and then the other customers that have pledges, I'm going to make them sub customers of this restricted time category. So I'm going to say save and here we are with our detailed data. I'm going to go back to the customers up top. So I'm going to I'm going to click on the customers up top and then if we scroll down, we've got our customer information that the two customers here and then we have this category of customers in essence, which is going to be the restricted items. Now, if we imagine someone that's going to pledge money and it's going to go under this restricted item, I'll just have a test item here so we can see it as a test. What I'm going to do is I'm going to go up top and we'll say I want a new customer and we can do this as we create like an invoice and we'll see this in the future and I'll just say this is a test. So this is test customer tab tab and then the key is that I'm going to put this as a sub customer. So I want to make this a sub customer and I'm going to always make it the sub customer of the restricted time area because anytime there's a pledge by definition under the system we're using that's going to be restricted restricted by time. So I'm going to make it a sub customer under that category. Then it's important to go over here. We don't want to bill with the parent because I'm not in a job cause system. We would bill it with the parent company, but that's not what we're using this function for. We want to bill it bill this customer. So we want to build this actual customer here. So the customer that we set up we're still going to bill that customer, but we're going to be able to run reports then with this sub customer function. So then if I was to save this, if we save this item, here it is. Now let's go back to the customers tab. I'm going to go back to the customers tab up top and scroll down and here's what we have then we have the restricted item and then this would be the test customer, the test customer now being a sub customer of the restricted category. Now the next thing I want to do is add some further functionality by going to the projects, which is the new kind of the new thing within QuickBooks online, which which adds some more reports that we can use with the projects and I'm going to go back on down and I'm going to say I want to start a project here and I'm going to do the same thing here. I'm going to say restricted and then I'm going to say time so restricted and then time and I'm going to pick up the customer and I'm going to be picking up that customer which is the same one restricted time. So I'm pulling over that customer into the project and we're going to set up the project in a similar fashion. So I'm going to go ahead and say save and this will allow us to run, you know, different reports for the project reports and we'll take a look at that. So here's are going to be our project information. So you can go through the little next tab to look at their projects feature and see how the projects work so you can go through here to consider the projects and then I'll close this back out. But in essence, we're going to have the income that's going in and the income going out to the restricted items so we'll be able to track this information basically separately within the projects which is going to be important because that that'll help us to track the restricted items. Notice it set up kind of like a job cost system where you have the in progress up top. So these are going to be in progress which will typically be the case with the restricted items. I would typically use these but you could toggle through these and use these to help us to format the reports as we go income in income out and then the profit. It'll also track the transactions here that will be assigned to it time tracking if we're assigning time to it and then the project reports project profitability time cost employer and an unbuilt time. So I'm going to go back to the first tab also note that once we have this set up then if we go to the reports down below, I'm going to go to the reports on the left hand side. We can then take a look at the project reports. For example, we can open the profit and loss. If we open up a standard profit and loss report. I'm going to close up the hamburger hold down control scroll up just a little bit so we could see this a bit more clearly and then scroll up top then in the total column. I can change the drop down here from totals and we could go down to we've seen classes before and now we can take a look at it by customer. So if we take a look at it by customer, we'll see that breakout now we haven't added anything to the projects at this point in time, but that's another way that we could sort these reports. Notice this is another way you can also go to this profit and loss and hit the drop down and go to the classes and that and then run that report and then you can have the same basically report that we find it's this report is also in there. It's profit and loss by class, but you can generate the profit and loss by class in the same fashion from the standard income statement with this drop down. So now next time we're going to continue and we're going to upload or we're going to make a form an invoice and notice once we say new and invoice for example when someone has a pledge then we'll set up the invoice and we can create the new customer here as we go and and we'll set up the customer as we go and we can apply that customer to make them basically a subcustomer of the restricted item just like we did with this test item right here by just saying add new customer. So we'll take a look at that next time. Let's get out of here. That's it for now. Let's get out of here.