Repeating Transfer using Transfer Accounts

Maranatha.Trsr · Post by **Maranatha.Trsr** » Mon Jan 16, 2012 9:23 am

I want to set up a repeating transfer from our general fund (unrestricted funds) to our Deacon’s Fund -Temporarily Restricted funds. This is a monthly transfer of $200.

I have account 01-9030-103 set up for Transfer to Deacon Fund.
I have account 01-9510-000 set up for Transfer from General.
The unrestricted income account is 01-4030-000 Tithes and Offerings (I don’t think that I use this)
The Checking account is 01-1110-000 (I don’t think that I use this)
The Temporary Restricted account is 01-4230-103 for the Deacon’s Fund.
What are the correct entries?

Is there a better way to do this?

We have several different accounts in our church but they are really just temporary restricted funds. We maintain separate balances. I have accounts set up as temp. restricted. Should I be using different funds in Pc11 or is it ok to use different accounts and restrict/release the funds as needed?

Thanks,
Harold

JohnDMeyers · Post by **JohnDMeyers** » Mon Jan 16, 2012 6:48 pm

You are saying Deacon's "Fund", but you give the number of a Deacon's "Account" in the General "Fund".

01-4230-103 is in the General Fund. Something like 02-4230-103 would be in a separate "Fund". So, I will answer the question given the account numbers you show. If you do have a separate "Fund", let me know, and I can adjust my answer.

You don't need 9000 transfer accounts, since all the accounts are in the General Fund. (see assumptions above).

Make sure 01-4230-103 "closes to" something like 01-3230-103 Temporarily Restricted Equity

Here's your repeating monthly transaction:
DB 01-4030-000 $200
CR 01-4230-103 $200

That's it! You will see the equity accounts update automatically each time you post this transaction.

Each time you spend money, you have to "release" the restriction, like this:
Spend $150.00
---------
CR 01-1110-000 checking $150.00
DB 01-5180-000 some expense $150.00

DB 01-4830-103 deacon release $150.00 (closes to 01-3230-103)
CR 01-4999-000 general release $150.00 (closes to 01-3110-000)

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Maranatha.Trsr · Post by **Maranatha.Trsr** » Mon Jan 16, 2012 7:50 pm

Ok that makes sense. Yes our church has several "restricted or designated funds". The monies get released and supplemented (transfers from unrestricted income & designated gifts) periodically throughout the year.

The previous treasurer had tracked these through spreadsheets. I'm setting up Pc11.5.
I'm not an accountant... so I'm wanting to do this correctly but keep it simple so that if I need to pass it off on another church member they will be able to hit the ground running.
I am not seeing a need to create separate funds in Pc.
It seems that I will be able to track and report the temporary restricted account balances as accounts.
Am I missing something obvious?

Thanks for your help.
Harold

JohnDMeyers · Post by **JohnDMeyers** » Mon Jan 16, 2012 9:45 pm

No, you're not missing anything by going with one fund.

We have separate funds for missions and our church school because each has several income accounts and several expense accounts.

We also setup a separate fund each time we have a large construction project, then role the money as an asset, back into the General Fund.

Maranatha.Trsr · Post by **Maranatha.Trsr** » Mon Jan 16, 2012 11:45 pm

If I go w/ one account
DB 01-4030-000 $200
CR 01-4230-103 $200
Then the Tithes & Offerings total is reduced by the $200. I'm thinking that this will be confusing for leadership and the church. I would rather have the Tithes & Offerings Total (01-4030-000) show the actual total of unrestricted funds received. (We also have a budget on that).
So w/ this new information is it best to set up additional funds?

Thanks for your patience w/ me.
Harold

JohnDMeyers · Post by **JohnDMeyers** » Tue Jan 17, 2012 5:57 am

Re: Repeating Transfer using Transfer Accounts

Postby Maranatha.Trsr » Mon Jan 16, 2012 11:45 pm
If I go w/ one account
DB 01-4030-000 $200
CR 01-4230-103 $200
Then the Tithes & Offerings total is reduced by the $200. I'm thinking that this will be confusing for leadership and the church.

You can't show the same $200 of income as both unrestricted and restricted. It's one or the other. Otherwise, you will take in $200 and show $400 of income on your books.

Even if you transferred it to a separate fund, you have to show the decrease in tithes and offerings.

Technically, what you are doing is not a "donor restriction". Temporarily Restricted income reflects the wishes of the donor. In this case, the donor is giving a tithe and offering, and the church board is placing the "restriction" on it. That may be where the confusion is. (I'm not saying it is wrong, because our church board makes similar "restrictions").