Pass Thru Account

sba35811 · Post by **sba35811** » Wed Sep 03, 2008 11:11 am

I am using an older version of PC - Version 8 and have a need for setting up pass through contributions. Example, love offering taken and check issued. Actually the church added to the check to "round up". I am anticipating more of this in the future. How do I handle these?

Post by **Zorak** » Mon Sep 08, 2008 11:30 am

Pass through contributions are treated as Liabilities in Fund Accounting. Instead of tracking the money coming in as income and going out as expenses, the money all flows in and out of a single liability account.

Example of money coming in from contributions:

01-1110-000 checking (debit) 200.00
01-2400-000 pass thru (credit) 200.00

Example of money being paid out in A/P:

01-1110-000 checking (credit) 200.00
01-2400-000 pass thru (debit) 200.00

If the church is adding $50 to the amount that was given, it would be treated as an expense:

01-1110-000 checking (credit) 250.00
01-2400-000 pass thru (debit) 200.00
01-5400-000 expense (debit) 50.00

sba35811 · Post by **sba35811** » Sun Sep 21, 2008 4:27 pm

Would I use this same procedure to processing donations to mission offerings - for example, Kathleen Mallory Offering is in September. Members will make donations specifically for this offering and the church will then write one check. Isn't this basically the same thing?

Another question comes to mind - can these contributions to Mission Offerings or church projects be entered through the Contribution Module and go on the Contribution Record?

Post by **Zorak** » Mon Sep 22, 2008 10:39 am

That transaction would look basically the same for any of your pass-through contributions.

sba35811 · Post by **sba35811** » Wed Sep 24, 2008 7:36 am

So if that is the case, I can not enter these donations through the Contribution Module and they will not go on the Contribution Record for the member's tax records.

Correct?

debbie · Post by **debbie** » Wed Sep 24, 2008 11:27 am

Zorak wrote: Example of money coming in from contributions:

01-1110-000 checking (debit) 200.00
01-2400-000 pass thru (credit) 200.00

You can enter thru contributions with the above example - you just need to go to "Maintain List of Contributions" and set up one with your title (ex: Kathleen Mallory Offering).

sba35811 · Post by **sba35811** » Wed Sep 24, 2008 3:57 pm

I tried this and my liabilities accounts are not in the list I have to choose from - ???

debbie · Post by **debbie** » Thu Sep 25, 2008 8:44 am

Maybe because you are using an older version.
If you go to "search" on the left side of PowerChurch page you can put in your version, OS, then "Contributions" and check the article called Using "Sub-Accounts to Track Designated Gifts".