Setting up a restricted fund

[RebeccaB]

I already had a general fund (01) set up and have been using it for a while but we opened a restricted bank account that is seperate so I added a restricted fund (02) in PC+. How do I get the beginning balance in? I am pretty new at this and just learning PC so any help is really appreciated. Thanks Rebecca

[NeilZ]

I already had a general fund (01) set up and have been using it for a while but we opened a restricted bank account that is seperate so I added a restricted fund (02) in PC+. How do I get the beginning balance in? I am pretty new at this and just learning PC so any help is really appreciated. Thanks Rebecca

Since this is a new account, and nothing is being moved from anywhere else. You need to create an OOB, an out of balance, transaction.

You can enter a transaction in Fund Accounting > Enter Transactions that starts with the reference/check no "OOB" (for Out Of Balance). The system will not force you to balance the transaction if this reference/check no is in place. A debit or a credit (depending on your situation) to the Fund Balance account should get you fixed up.

In your case, you'd be doing a debit transaction to add money to the fund. The OOB allows you to get by with entering only one side of what is normally a two sided transaction.

[RebeccaB]

Thank you so much!! I am so new at this and every day is a new experience. With very little accounting background this one was just beyond me. I think that solves my problem perfectly.

[NeilZ]

Thank you so much!! I am so new at this and every day is a new experience. With very little accounting background this one was just beyond me. I think that solves my problem perfectly.

FWIW .. I have no accounting background whatsoever, that said, understanding double entry accounting is not that hard as long as you remember that for every debit you have to have a corresponding credit.

Making sure which one is which is the hard part

You may want to think about taking the Powerchurch online training classes Accounting 101 & 102. They helped me understand this so much better than I did previously.

[Zorak]

If the new accounting fund does not currently have any balances, you would want to enter a balanced transaction (posting both a debit and a credit) to get those balances in place. Entering an OOB transaction will make that new fund be out of balance.

A beginning balance transaction normally looks something like this:

02-1110-000 Checking (debit) 2500.00
02-3110-000 Unrestricted Net Assets (credit) 2500.00

[NeilZ]

If the new accounting fund does not currently have any balances, you would want to enter a balanced transaction (posting both a debit and a credit) to get those balances in place. Entering an OOB transaction will make that new fund be out of balance.

A beginning balance transaction normally looks something like this:

02-1110-000 Checking (debit) 2500.00
02-3110-000 Unrestricted Net Assets (credit) 2500.00

Ack ... forgot the net assets. So when you create the fund using the Wizard, and enter the beginning balance, that takes care of creating the credit to net assets then .. ?

[Zorak]

The initial Accounting Setup Assistant sets up the General Fund and it creates a properly balanced transaction for the beginning balances.

When you add a new accounting fund after the fact, there is no beginning balance. You have to adjust that in by entering a transaction in Fund Accounting.