Provision for Grant reclaim

Hi Pravin - I'm assuming that this is a potential reclaim of a grant you've received in the past, rather than one you paid out and are now considering reclaiming?

If so then there's an account type you can use called "Provisions for liabilities". So in account codes, under Settings, create a new account called something like "Potential grant reclaim" under this type. This will record the fact you potentially owe the grantor some money back.

You then have to decide whether to show the reduction in profits/funds as an expense or negative income. If the latter then you can use the grant income account used to record the original grant income. If the former, then, unless you already have one, you can create another account, say "Grants repayable" under type "other expenses".

Once you have your two accounts you then create a Journal entry under Tools, in which you debit the grant income (or grants repayable) account and credit the "Potential grant reclaim" liability account, with the sum you consider may be repayable.

Hi Pravin - I'm assuming that this is a potential reclaim of a grant you've received in the past, rather than one you paid out and are now considering reclaiming?

If so then there's an account type you can use called "Provisions for liabilities". So in account codes, under Settings, create a new account called something like "Potential grant reclaim" under this type. This will record the fact you potentially owe the grantor some money back.

You then have to decide whether to show the reduction in profits/funds as an expense or negative income. If the latter then you can use the grant income account used to record the original grant income. If the former, then, unless you already have one, you can create another account, say "Grants repayable" under type "other expenses".

Once you have your two accounts you then create a Journal entry under Tools, in which you debit the grant income (or grants repayable) account and credit the "Potential grant reclaim" liability account, with the sum you consider may be repayable.