system generated entries

[retta]

Hello,
I am new to Powerchurch and I have tried to figure out most of the operations using the manual, but I can't locate this item in the manual. I have posted entries and I am reviewing the account activity report. The debits and credits at the end of the report are not equal and the difference seems to be a figure in the (system generated) GE (?general ledger?); it is the same figure posting on the credit side. Please help me to understand why the difference and if I need to review and correct my postings?

[JohnDMeyers]

What account(s) did the system generated entry affect, and was it a credit or debit?

[retta]

[quote="JohnDMeyers"]What account(s) did the system generated entry affect, and was it a credit or debit?[/quote] The account activity report shows 01-3110 Unrestricted Net assets in the credit column; the description says Total of accounts set to -close to this account...

[JohnDMeyers]

I think you're ok. Run your balance sheet and make sure that your total assets equals your equity-plus-liabilities to be sure.

When you close the end-of-month, the system generated amount will be incorporated into the balance of equity, which is how your balance sheet stays updated.

Here's maybe a better explanation:

Let's say you have a new system with only one bank account with a starting balance of $10,000 on Jan. 1.

If you enter a contribution that does the following on Jan. 2
01-1110-000 DB 25.00
01-4110-000 CR 25.00
(post in January)

Now your income and expense statement shows $25.00 and your balance sheet shows 10,025.00 in assets and 10,025 in equity.

Your account activity for 01-3110-000 in January will show:
10,000 starting balance for 01-1110-000
DB 01-1110-000 25.00
CR 01-4110-000 25.00
CR 01-3110-000 total set-to-close to unrestricted net assets 25.00

What happens when you close January, the CR to your income (which affects your income and expense statement) becomes an entry on your balance sheet (the CR to the equity account takes affect, and the CR to the income account "disappears", for lack of a better term).

Only one of the CR's in January is in effect. That's why the description says "set to close". It will take effect AFTER you close the month.

To carry this example one step further, if you cut a check in January for $75.00
Your activity in January would show:
DB 01-1110-000 25.00
CR 01-1110-000 75.00
CR 01-4110-000 25.00
DB 01-50xx-000 75.00
DB 01-3110-000 total set-to-close to unrestricted net assets 50.00

The DB in 01-3100-000 is the total of a CR of 25.00 and a DB of 75.00 added together. Since the amount nets out to a subtraction of 50.00, the system shows a single entry on the DB side of 01-3100-000

Hope that helps.