Grant funds how to handle them for payment

I hope someone has some advice. I work in non profit. However, we are more a non profit that supplies equipment to non profit. We have a grant fund that can be used to help with costs of our services. The money is given to our organization in one lump sum to be used for payments in whole or part to non profits we serve. How should I set this this up in ERPnext?

Example: customer purchases a laptop from us. They pay $200. The grant pays $200. The total of $400 is applied to Sales account and grant is reduced by $200. The purchaser pays $200 by company check.

It seems like a prepayment to use by multiple purchasers… in a way.

Recording grant funds for this purpose seems confusing for some reason.

Advice is greatly appreciated.

Thanks for elaborating.

How would you categorize Grand received? As an Asset or Liability? Based on the create an Account for Grant.

When receive the Grant, make posting in this account. Consultant with your accountant on which other account will be selected.

When making Sales, then receive partial invoice from the Customer and make Payment Entry for it.

For rest of the amount, make Adjustment Entry via Journal Entry, select Customer and Invoices, and make posting against Grant amount.

Hope this helps.