Record Accounting Information

Learning Objectives

After completing this unit, you’ll be able to:

  • View accounting information from Salesforce opportunities and payments.
  • Explain how credits and debits are updated in different scenarios.

Track Changes For Fundraising

Accounting Subledger is up and running at our (fictional) nonprofit, No More Homelessness (NMH), and it hasn’t changed the day-to-day work of the Development Director, Aniyah Thompson, or her team. As they go about their usual tasks, the accounting data is generated automatically in the background.

That data—permanent, transparent, secure, transferrable—will make a big difference for the accounting team, though. Each pledged and closed won opportunity and completed payment is creating records of debits and credits the team will use to close the books.

Let’s take a look at what that data looks like in a few different scenarios.

Aniyah, development director at NMH, accepts a check from a new donor after an event.

Recording a Simple Cash Gift

Aniyah gave a talk to a community group this morning and it inspired a donor to write her a check for a $50 donation at the end of the event. She creates a new opportunity record and marks it Closed Won.

A payment is automatically created, and when ledger entries are next created (remember, NMH chose an overnight batch for ledger entry creation) two new entries will be created.

Let’s take a look by clicking View All in the ledger entries related list on the opportunity.

The debit and credit created from the closed opportunity

The first entry, the debit, shows the ledger type Transaction because it is a payment for the full amount of the $50 gift. The GL Code column shows the payment type Check because that is how the donor paid.

The credit entry is a Payment type because it reflects the amount paid on the transaction. The GL Code is the default GAU Code of General Fund, which tells accounting where to count this donation.

Recording a Pledge and Payments

Sofia Rivera, a Development Associate at NMH, just received a payment on a pledge from a major donor supporting the nonprofit’s food pantry program. Let’s see what the record looks like after she enters a payment on the pledge.

The four ledger entries created on the pledge and payment

The first line, the initial debit from when the pledge was committed, records $2,000 to the Receivables GL Code. This means that accounting will add $2,000 to the Receivables line on its balance sheet. This is classified as an Allocation because it is for a pledge and a single GAU.

The second line shows a $2,000 credit for the pledge to the Food Pantry GAU. It’s also an Allocation record type.

The next two lines show new entries that reflect the payment. The third line, a debit, shows that the $1,000 payment was made by check. The fourth line shows the same $1,000 payment as a credit to Receivables. Taken together, this means that accounting’s books will show that it has $1,000 more in checks and $1,000 less in receivables.

The opportunity isn’t Finalized until the last $1,000 is paid.

If you’re a fundraiser and you’re still getting used to the language of debits and credits, don’t worry. All you need to know is that, thanks to Accounting Subledger, everything you did through your normal process—even with all the changes, even over months—is exactly what your accounting team needs.

At NMH, that makes Development Director Aniyah happy. It might make Sam Aquino, the Finance Director, even happier. In the next unit we’ll follow along as Sam moves the data from Salesforce into her accounting system.

Resources