transfer of funds

[S A Shows]

Please help! I am at a loss as to how to credit an account with money. I am transferring money from our money market (01) account to a designated fund (02) account. I can get the money from one bank account to another, but I don't know how to get it into an individual subaccount. Should I use the income transfer account that they suggest on the powerchurch support page? and if so, how?

[Zaphod]

Yes, the scenario described in the support document (available here) is still applicable, even with a subaccount. All you have to do is make sure the subaccount is the account used for the transaction.

For instance, if you wanted to move from 01-1110-000 to 02-1210-101, the transfer would look like this:

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credit: 01-1110-000 
debit: 01-4999-000 (assuming this is the transfer account)
credit: 02-4999-000
debit: 02-1210-101

Is that the answer you're looking for?

[S A Shows]

No, that's what I had originally tried. As best as I can figure, it's because the bank accounts are Credit Accounts and my subaccounts are Debit Accounts. The only way I have been able to figure it out is to take the money out of the money market and transfer it to a bank account that is no longer being used...then write a phantom check to a building account fund that is linked to the subaccount. This doesn't seem like the best way to transfer this money, but I can't figure out how to work it out any other way.

When I transfer the funds as you suggested into the subaccount, they show up as a deficit instead of a credit as needed. Any other ideas?

[Zaphod]

As best as I can figure, it's because the bank accounts are Credit Accounts and my subaccounts are Debit Accounts.

Actually, that's backwards. Bank accounts are Debit accounts (ie, a debit will increase them and a credit will decrease them). Income accounts are Credit accounts. That's most likely the problem.

Actually, now that I think about it, maybe you should post the exact accounts you're using for each line your transaction. That will help with figuring it out.

[S A Shows]

You were right...our bank accounts are debit and incomes are credit...with that said here is what I have been trying to do.

I want to transfer $15,000.00 from our 01-1212-000 (Debit) Money Market account to 02-4130-115 Income Building Fund (Credit). Bills are paid from this account on 02-8309-115 Building Fund Expense (Debit). Our primary checking accounts for these accounts are 01-1112-000 and 02-1112-000. These two accounts are tied together.

Sorry I haven't been more helpful in giving you the information to begin with. As you can see, bookkeeping is not my strong point, but as church secretary it has fallen on me.

Thanks for any help.

[Zaphod]

Ah ha!! This is exactly what I was afraid of.

02-4130-115 is an Income account. Income accounts don't actually have any money in them, they measure money that passes through them. Confused yet? The only accounts that "hold" money would be an asset or a liability. Your 01-1212-000, 01-1112-000, and 02-1112-000 accounts are Assets (I know this by the 4-digit major account number in the 1000-1999 range). When you transfer money, you generally transfer from one Asset to another.

For this transaction, I *think* you'll want to use this transaction:

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Credit 01-1212-000
Debit 01-4999-000 (a transfer account, your number may be different)
Debit 02-1112-000
Credit 02-4130-115 (your Building Fund Income)

then...

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Credit 02-1112-000
Debit 02-8309-115

to issue the check from this account.

I say *think* because I'm not an accountant, nor are any of us here. The part I'm not so sure about is the usage of the 4999 income transfer account. You could use 01-4130-115 if it exists, but it could go either way. An actual accountant would be better able to answer that particular question.

[S A Shows]

In the absence of S A Shows I have printed out your reply. Any further notifications will be appreciated. Thanks. DC Vannoy