Release of Funds

[Michelle H]

I am using 11.1 powerchurch, we just purchased a building and I released from restriction building fund money. The debit is to account 4820 and the credit is to 4999. I must be missing a step as my year to date income is overstated. Sorry but an accountant I am not. Can someone tell me how to fix this. Thanks

[JohnDMeyers]

The release doesn't reduce your income. That will occur when you close the last month of the year.

Here's an example. If you took in $1000 in restricted income for your building, then spent and released $1000, it would look like this on your financial statements:

Income and Expense Statement (after the contribution of $1000, but before the release)
01-4210-000 Building Income $1000
01-4810-000 Building Release $0
01-4999-000 General Release $0

Income and Expense Statement (after the contribution of $1000, and after the release)
01-4210-000 Building Income $1000
01-4810-000 Building Release -$1000
01-4999-000 General Release $1000


Balance Sheet (after the contribution of $1000, but before the release)
01-1110-000 checking $1000
01-1920-000 building asset $0
01-3110-000 unrestricted net assets $0
01-3210-000 Building Restriction $1000

Balance Sheet (after the contribution of $1000, and after the release)
01-1110-000 checking $0
01-1920-000 building asset $1000
01-3110-000 unrestricted net assets $1000 [system generated]
01-3210-000 Building Restriction $0 [system generated]


-------

After you close the last month of the year:
Income and Expense Statement
01-4210-000 Building Income $0
01-4810-000 Building Release $0
01-4999-000 General Release $0

Balance Sheet
01-1110-000 checking $0
01-1920-000 building asset $1000
01-3110-000 unrestricted net assets $1000 (permanent)
01-3210-000 Building Restriction $0 (permanent)