How To Record Check from Insurance for Roof Replacement

[FBCParis]

Rule #1 I have no idea what I'm doing.

• A Storm Damaged our roof.

• State Farm wrote us a check

• I have no idea how to record that check.
  • I do know that I should NOT bring it in through contributions.
  • We will be depositing it into the 04-4430-430 Building Fund.

Should I do something with accounts receivable? (I'm not entirely sure how)

[NeilZ]

Rule #1 I have no idea what I'm doing.

• A Storm Damaged our roof.

• State Farm wrote us a check

• I have no idea how to record that check.
  • I do know that I should NOT bring it in through contributions.
  • We will be depositing it into the 04-4430-430 Building Fund.

Should I do something with accounts receivable? (I'm not entirely sure how)

First off, 04-4430-430 looks like an INCOME account, not an ASSET account.

Just create a deposit transaction in Funds Accounting by going to Accounting -> Funds Accounting -> Enter Transactions. You would use the checking account for the Building Fund as the DEBIT account, and the 04-4430-430 as the CREDIT account. Not knowing how you have your asset accounts setup, that's as much as I can say about that part of the deposit transaction.

You would add a note in the Enter Transaction note box that the amount is a insurance distribution for repairs, or something along those lines.

Hope this helps.

[FBCParis]

You are correct, that was an income account.
I thought this was income.
anyway.....

our 3430-430 Building fund equity account is included in our main checking account.

So, how do I bring this in so that it sits in our building fund?

• 04-3430-430 Building Fund Equity

• 04-4430-430 Building Fund Income

• 04-7430-430 Building Fund Expense

[NeilZ]

You are correct, that was an income account.
I thought this was income.
anyway.....

our 3430-430 Building fund equity account is included in our main checking account.

So, how do I bring this in so that it sits in our building fund?

• 04-3430-430 Building Fund Equity

• 04-4430-430 Building Fund Income

• 04-7430-430 Building Fund Expense

Again, an INCOME account is not an ASSET account. The equity/net assets account is normally connected to an asset account in some way.

The issue here is this ... is the Building Fund in a separate 04- Accounting Fund. The default in Powerchurch is operations is an 01- Accounting Fund. What is the 04- accounting fund, and what is the checking or savings account for that accounting fund. One additional question, is this 'building fund' set as a donor-restricted account? That also makes a difference.

UPDATE ... after looking at what you've said, I'm thinking that this is a temp restricted account in Accounting Fund 04- if that is correct please let me know, and give me the checking account number for that checking.

[FBCParis]

The Building fund is in the main checking account.
When I use the contributions module to record someone donating to the building fund directly it debits to the 04-1110-400 bank account (see below) and credits to the 04-4430-430 account. (see below)


The compressed chart of accounts here looks like this....

Fund 01

Code: Select all

1. 01-1000 Assets
    2. 01-1050 Bank accounts
        3. 01-1100 Checking Accounts
             4. 01-1110 First Mid Bank account 
                 5. 01-1110-400 Designated Checking   
                 ... 
1. 01-3000 Net Assets
    2. 01-3400 Designated Fund [Equity]
             4. 01-3430-430  Building Fund  [Equity]

Fund 04 is DESIGNATED FUND. The exact same checking account (in this case) is used for both the 01 General Fund and the 04 Designated Fund.

Code: Select all

1. 04-1000 Assets
     2. 04-1050 Bank Accounts
         3. 04-1100 Checking Accounts
             4. 04-1110  First Mid Bank account  [Asset]
                 5. 04-1110-400 Designated Checking [Asset]
1. 04-3000 Net Assets [equity]
    2. 04-3400 Designated Fund [Equity]
              4. 04-3430-431 Building Fund [Equity]
1. 04-4000 Income [Income]
    2. 044400-400 Designated Fund [Income]
              4. 04-4430-430 Building Fund  [Income]

There is also an 04 expense fund but I know it's not going there.


Answering some of your other questions...
The Building fund is a Temporarily Restricted Account.
The checking account number (for the bank) is the same account in both funds. In other words that same checking account is set to be used across funds.

Based on what you said so far it looks like I...

04-1110-400 Designated Checking DEBIT $10,000
04-4430-430 Building Fund CREDIT $10,000

----
I remain as confused as ever in general when accounting happens.

[NeilZ]

The Building fund is in the main checking account.
When I use the contributions module to record someone donating to the building fund directly it debits to the 04-1110-400 bank account (see below) and credits to the 04-4430-430 account. (see below)

<SNIP>

Based on what you said so far it looks like I...

04-1110-400 Designated Checking DEBIT $10,000
04-4430-430 Building Fund CREDIT $10,000

----
I remain as confused as ever in general when accounting happens.

GREAT !!!! That is exactly how the transaction should look ... behind the curtain, the system understands that all the income coming in to Building Fund closes to the restricted net assets/equity 04-3430-431. This is why when you post the transaction coming from Contributions to Fund Accounting, the 04-3430 account reflects that additional income.

Again, in that Funds Accounting transaction you create, include in the notes section everything about that income, that's its a insurance payment for repairs from State Farm, etc, etc.