Transfers between Funds

[TMertz]

Our church has been using PC for contributions and accounts payable but not for income statements or balance sheet entries. Result is that General, Building, Savings Fund balances are off. Total of all is close.

My plan was to debit and credit funds to get in balance but I see some mention using 9000 level transfer accounts. If we note reason for transfer what value does using the 9000 transfer accounts afford?

All funds are in common checking account.
Thanks in advance.

[JohnDMeyers]

To transfer $1000 from a checking account in Fund 01 to a checking account in Fund 02, you have to utilize two accounts in each fund:

Move $1000 out of Fund 01
CR 01-1110-000 $1000
DB 01-9110-000 $1000

To receive $1000 in Fund 02
DB 02-1110-000 $1000
CR 02-9110-000 $1000

The transfer account is outside the range of income and expense, so you don't "double count" the money by using a 9000 level account.

When you run a Balance Sheet report, do your Assets equal your Equity plus Liabilities for each Fund? There is a way to correct it, but I am not sure I understand your situation.

[TMertz]

None of the Funds are in balance, General Fund Asset is a large negative amount, building fund is very large positive amount. My thought was to get the asset balances correct by moving asset balances from one fund to another. I was just going to debit building asset fund and credit general fund asset account.

We have no liabilities. The Fund Balances do not equal the Asset balances even with no liabilities.

Since we only have five funds and in total they are close enough at the asset level we would just end up with a minimal General Fund adjustment. However I would need to figure out how to get the fund balances to equal the Asset balances.

There is over a $400,000 difference between total Asset balances and Total Fund Balances. If I just deleted all account balances and keyed in the fund balances for Jan 1 it would be easiest. The session is OK with this as long as we maintain historical contribution and expense detail.

We have not closed out 2011.

[JohnDMeyers]

If you run a comprehensive report (including all funds) how much are you off by?

I am hoping the problem is that one fund is off by positive $80,000, and another fund is off by negative $80,000, for example.

Look for funds that are off by similar amounts, in the opposite direction.

If the comprehensive report is closer, that may be a good sign.

[TMertz]

The total system is only out of balance by $34,000 which considering no one has reconciled or worried about balance sheets for over 10 years is pretty good IMO.

I have been adjusting the asset accounts of the funds to their "real" values with offsetting entries to each funds "3001" account. My thought was I wanted to see the impact of any entries I made on the balance sheet report until I got asset accounts in line. I currently have a negative million in the building fund 3001 account and a positive million (above true balances) in two investment and general funds. Since we don't have any liabilities the 3001 accounts for each fund would need to have a balance to offset the asset accounts for each fund.

If I transfer funds from the general account to the building fund I assume I need to use the 9000 level account?
I can't just debit general fund 3001 account and credit building fund 3001 account?

[JohnDMeyers]

Don't tell my CPA I said this, but the only way you are going to bring your Assets inline with an out-of-balance Equity plus Liability is something like this:

DB 01-1234-000 asset
CR 02-3123-000 equity

and ignore the warning telling you not to do this.

Or, you will have to make a one-sided entry. viewtopic.php?f=3&t=7292&p=24691&hilit=oob#p24691

[TMertz]

Thanks,

We will see what we can get done tomorrow.

[NewhopeChatt]

Hi, I was reading your discussion regarding the transfer of funds between accounts.
I just want to make sure I am doing this correctly. I have to transfer $300 from the Pastor's Discretionary account to the Organ Substitute account. My thinking is I credit the "Pastor's account" and debit the "Transfer From Other Acct.", then do another entry and debit the "Organ Sub account" and credit the "Transfer To Other Acct."
Is that the correct way to do it?
Thanks,
D

[NeilZ]

Hi, I was reading your discussion regarding the transfer of funds between accounts.
I just want to make sure I am doing this correctly. I have to transfer $300 from the Pastor's Discretionary account to the Organ Substitute account. My thinking is I credit the "Pastor's account" and debit the "Transfer From Other Acct.", then do another entry and debit the "Organ Sub account" and credit the "Transfer To Other Acct."
Is that the correct way to do it?
Thanks,
D

I am assuming you're moving funds between ACCOUNTING FUNDS (For example: Accounting Fund 01 to Accounting Fund 02)

This thread will give you the specifics ..

viewtopic.php?f=3&t=7334

note the proper debits and credits

However, if you're moving within the same Accounting Fund, say from 01-1300 to 01-1500, then just CR the one and DB the other, no transfer accounts needed.

[NewhopeChatt]

Thank you for answering my question! Yes, I am transferring between two funds that are both 01. The sample that I had read in the book only showed going between 01 and 02 so I just wanted to make sure the proper way to do it between 01 to 01.
THANKS!
Have a great day!

[Zorak]

Transferring between two accounts in the same fund does not require transfer accounts.

You can simply credit (the from) and debit (the to) accounts if both of them are in the 01 fund.