User Support Forum

For one of our staff members, we would like to deduct a certain amount from his regular paycheck and record this amount as a contribution to the church.

From an accounting standpoint, would this be accomplished strickly through the payroll module, or would we need to adjust the manual check in payroll, and enter a cash contribution in the contribution module?

As an example, use $1000 for the regular pay amount. Assume $100 will be deducted and recorded as a contribution. We would like $1000 to be recorded as payroll expense, write a manual check for $900, and record $100 in contributions. Is there a way to accomplish all of this in the payroll module, or will it require postings from both the payroll module and the contributions module?

Thanks,

Charles

Unfortunately there is no way to handle this thru just Payroll. If you were to make the deduction in just Payroll they would not see this entry on the contribution statement.

If you create an additional item in payroll to do this, you should have it as a deduction and credit an income account (the one the contribition would) and have it debit the bank (the one the contribution would).

For the contribution side it would probably be easiest to do while there are no other unposted contributions. If done in that manner, enter it as a normal contribution, and then post it and choose to only post to contributions, that way it has no affect on fund accounting.

Then your payroll, fund accounting, and contributions will all be correct.

Maybe a forum user can suggest a better way to handle a situation like this.

Here's another suggestion. You could create a new accounts payable account to track the deduction. On the Payroll side debit the cash account and credit the accounts payable account on the payroll deduction item you set up. On the Contributions side set up a Contribution fund with the debit to the same accounts payable account and a credit to a revenue account. This way you could enter this contribution along with your others all at the same time and post to Fund Accounting. This method also gives you a check and balance via the accounts payable account to make sure you post both modules.