Best method to transfer funds from one bank to another

[Turning Point]

We just closed our money market fund from our old bank. That bank wrote a check to our new bank which was deposited. I'm having trouble trying to figure the best way to show this in powerchurch.

Our account number in powerchurch for the money market fund is 01-1211-000 and that is the only account for the money market.

So I thought I could just write a check from the money market fund to our new bank using the bank's check number but all I could get to was:

01-1211-000 CR (entire fund), I don't know which fund to Debit.


Depositing the check into our new account would I put it in like:

01-1120-000 DB (entire fund)
01-4025-000 CR (entire fund)

I just want to make sure I do it properly.

Lisa

[sgbani]

Well, there are a few ways I could see this being done.

1) You could create a new asset account, such as 01-1212-000, for the new money market account. This would allow you to separate by asset account number the old bank account number, and the new one.

2) My preference is to keep the same asset account number. All you are doing is changing which bank has custody of the account, you are not actually moving any money to another type of asset account, or to your operating checking account, etc.
You can make a note in PowerChurch for that asset account indicating that you changed banks at a particular time that holds the account.
Since the check was made by your bank, and not you, there is no real transaction to enter in fund accounting, unless you decide to use option 1 idea from above.

We have done CD's at our bank, and each CD is a different account number, yet the asset account we use in Fund Accounting remains the same, I simply update the notes, and of course, the interest received gets added to the CD account, and then transferred out (if I do such a transfer) to another account if that is our intention.


So, from my perspective, you do not enter any transaction into fund accounting, unless you go with my option 1 suggestion above of making a new asset account entirely. Then, you do a simple credit of the old asset, and debit the new asset.

[Turning Point]

Thank you for all of that. I should have explained better. We closed the Money Market from the old bank and deposited the money into our general fund at the new bank. Does that make a difference?

[NeilZ]

Thank you for all of that. I should have explained better. We closed the Money Market from the old bank and deposited the money into our general fund at the new bank. Does that make a difference?

In that case, I would just CREDIT the old money market account and DEBIT the checking account. This will show the transfer, nothing else is needed. You really should not be crediting any income account, as its not NEW income. The simple 'debit/credit' transaction will show the transfer. This should zero out the old money market account in Powerchurch.

Include in the Notes area of the transaction window that this is a transfer from a closed money market account to the current checking account, this is for audit purposes.

[Turning Point]

Ok. Thank you so much!