Accounting

[acctmom10]

I am using Ver 11 and I need to know how to spend money out of a passthru contribution? I have to write the check to the pastor for a discretionary fund.

[JohnDMeyers]

A "pass-through" situation is generally where you collect money for another non-profit organization and write a check to that other non-profit organization.

If you collected money for a designation in your own church, that is more likely a "donor restriction".

[acctmom10]

The reason that I used the category Pass-thru is because I am very unfamiliar with these other categories. I have them listed under Current liabilities just like I had them listed in Quickbooks. Is this the correct listing in my chart of accounts?

[JohnDMeyers]

Yes, a typical pass-through account is a liability account:

To enter money into a pass-through situation:
DB 01-1110-000 checking
CR 01-2210-000 pass through liability

To pass the money to someone:
CR 01-1110-000 checking
DB 01-2210-000 pass through liability

As you can see, no income nor expense account is affected in this transaction. That is the downside of using a pass-through situation for money that is used by your own organization. You lose the income/expense record trail.