adding a new loan

[Sandy]

We just took a loan for a new building and the way we are handling it is to put the money into our savings which currently has some funds for our driveway and is restricted. I would like to restrict the driveway funds further and am not sure what entries to make to show the loan in PC+. We will transfer funds to checking as needed.

This is probably very simple but I would like to do it right the first time. Thanks for any help. We are using PC+ 11.

Sandy

[JohnDMeyers]

Here's what I would do (and it's medium-simple, so I'll explain it)

Note: This isn't new income, therefore, it doesn't fit the definition of "donor restricted" in the accounting sense. I will treat it as regular money that your church board has decided to use toward a particular purpose, instead of creating a "donor restriction".

Step #1 create savings sub-accounts
Since you already have some money in Savings, I would create a Group Savings account with two Savings sub-accounts. One for the existing money, and one for the loan money. That way, the two amounts will be easy to identify on reports.

I will assume your Savings (old account) is currently 01-1120-000 in my example (you can use your own account numbers)

Create account 01-1122-000 level 4 GROUP, Savings
Create account 01-1122-001 level 6 Detail, existing savings
Create account 01-1122-002 level 6 Detail, loan

Move existing savings from 01-1120-000 to 01-1122-001
CR 01-1120-000 Savings (old account), $existing_savings_amount
DB 01-1122-001 existing savings, $existing_savings_amount

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Step #2
Receive loan
DB 01-1122-002 loan
CR 01-2122-000 new building loan (liability)
-------
Step #3
Move money to checking from loan savings
CR 01-1122-002 loan
DB 01-1110-000 checking

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Step #4 spend $100 toward a building asset
CR 01-1110-000 checking, $100
DB 01-1810-000 new building asset, $100

or

Step #4 spend $50 on fees and other expenses
CR 01-1110-000 checking, $50
DB 01-5810-000 new building expense, $50
-------

Hope this makes sense.

[Sandy]

This helps very much, but I still have an issue. I think members would want to see the funds expensed as they are paid out.
Example: first order was a new sign
move funds from savings to checking
cr 01-1211-002 new loan savings
db 01-1110-000 checking

purchase sign
cr 01-1110-000 checking
db 01-5692-000 sign expense

Is this possible to do and then how do I show the increased asset using this example?

Sandy

[JohnDMeyers]

You can create a section in expenses (using a GROUP account may be a good idea) where you "expense" items that will later be rolled into the building asset.

We use a separate building fund number (03) for this, but you can do it in the 01 account, and roll it into the asset all at once, kind of like this:

Create 01-5600-000 GROUP Level 4, new Building Assets
Create 01-5601-000 Detail Level 6, sign
Create 01-5602-000 Detail Level 6, windows
etc.

or you could use sub-accounts:
Create 01-5600-000 GROUP Level 4, new Building Assets
Create 01-5600-001 Detail Level 6, sign
Create 01-5600-002 Detail Level 6, windows
etc.

When you get done making all of your "future asset" expenses, roll them all into the new building asset in one transaction:
DB 01-1801-000 new building asset $30,000
CR 01-5601-000 sign $3,000
CR 01-5602-000 windows $8,000
CR 01-5603-000 etc $19,000

[Sandy]

Sorry for the delay in getting back to you. I am still working on all of this. Thank you for the help.