JournalX is a tool for grant (or trust) accounting in Xero. It lets you tag Invoices or Spend Money transactions that were paid by other people, and maintains a corresponding liability account.
It creates journal entries based on rules you set up, totalling the value of invoice lines & spent money each calendar month. You can choose which invoices are counted based on Tracking Categories. Your liability account will be up to date within a few seconds of saving each invoice.
I wrote JournalX for One Tenth Human to keep track of our grant balances, but it's free for anyone to use. I'd asked other charity bookkeepers and it turns out they all had extremely painful (and different) manual ways of solving this same problem. So I hope this makes life easier for them, and you.
It's written by Matthew Bloch. Drop me a line on matthew@blackandwhite.software if it's working for you!