Payable Transfer

[tfrieze]

I have an amount of money sitting in "Payable Transfer". It is not there. It was already deposited in the savings account. How do I get rid of that amount from showing on the Balance Sheet? Any help would be appreciated.

[JohnDMeyers]

A few questions, first.

Are you showing this as a liability or an asset?
What do you mean "it's not there"? If it's not there, how can you get rid of it?

[tfrieze]

A few questions, first.

Are you showing this as a liability or an asset?
What do you mean "it's not there"? If it's not there, how can you get rid of it?

Hi John,
Thank you for taking the time to help me figure this out. The "Payable Transfer" is showing as a liability on the balance sheet. I did a bit of research on the account and the exact amount (5417.01) was transfered into the church's savings account on the same day this "payable transfer" took place. I don't know how it got on the balance sheet and I'm just trying to clean up the balance sheet. Is there such a thing as "writing off a liablity" and, if so, how?
Thanks!

[NeilZ]

A few questions, first.

Are you showing this as a liability or an asset?
What do you mean "it's not there"? If it's not there, how can you get rid of it?

Hi John,
Thank you for taking the time to help me figure this out. The "Payable Transfer" is showing as a liability on the balance sheet. I did a bit of research on the account and the exact amount (5417.01) was transferred into the church's savings account on the same day this "payable transfer" took place. I don't know how it got on the balance sheet and I'm just trying to clean up the balance sheet. Is there such a thing as "writing off a liability" and, if so, how?
Thanks!

Did you check the posted transfers to check how the money was transferred into the savings, that is, was there a transaction made in PCPlus for that? Is the savings account listed under the same Funds Accounting Fund as the checking ??

[JohnDMeyers]

Just a general comment while you answer Neil's questions -

In general, you cannot "write things off" in a double accounting system.

The whole point of the General Ledger in accounting is to have a record of everything. Once an entry is entered in the GL (in PowerChurch, the analogy is "posted in Fund Accounting"), it is permanent. It cannot be removed. A separate correction entry, which is also permanent, must be made.

What you have to do is locate the original posted transaction, and reverse it with a new REVERSE transaction.

[JohnDMeyers]

And I had another thought.

It is possible that an incorrect attempt was made to subtract this amount. In order to find such a transaction, run a Journal Report in Fund Accounting (all transactions, all dates that may be included), and use the binoculars to search for the amount within the report.

If you cannot find the transaction, here's the second best way to eliminate this figure:
DB 01-2210-000 liability
CR 01-3110-000 unrestricted net assets

Not the best way, but it will work.

[tfrieze]

I found the entry in the journal report:
01-1131 WFCU Building Fund Transfer from Building Fund Payable 5417.01
01-2400 Payable Transfer 5417.01

The 01-1131 is a savings account. I believe what happened is a certain amount of designated money (5417.01) was sitting in the Building Fund Payable account (checking) and was transferred over to the savings account. I think maybe a double entry of some sort took place where somehow it ended up in the payable transfer account. The 5417.01 actually was deposited in the savings account. So confused....

[JohnDMeyers]

You should run an Account Activity report on 01-3110-000 to make sure this account was never directly transacted by that amount. If it was, that should be REVERSED as well.

Is there currently a balance of 5417.01 in 01-1131?

Because the REVERSE transaction will subtract 5417.01 from that account. If there is no balance there now, you will end up with a negative 5417.01 in that account.

If 01-1131 is zero, currently, then use the fall back transaction:
DB 01-2210 5417.01
CR 01-3110 5417.01