How to transfer money into different funds in version 10

[AmandaTarter]

I need to transfer money from 2 fund raisers we had (both are placed in different "Funds") into an asset account under our General Fund....
Example:
Money from Chili Lunch which is in fund "55" Asset account 55-1110-000 needs to be moved to Sound System asset account in Fund "1' General Fund, asset account 01-1110-720. ALSO money from Music Fund "25", Asset account 25-1110-730 needs to be transfered into the same General fund asset account.
Would you please look at this transaction and make sure it is correct before I post, it tells me that the debits/credits from the different funds do not match and I cant see the mistake.

55-1110-700 Chili Lunch - Credit asset account
55-9101-000 Transfer to General Fund - Debit account
25-110-730 Hee-Haw - Credit asset account
25-9101-000 Transfer to General fund - Debit account
01-1110-720 Sound system asset account - Debit account
55-9535-000 - Transfer from fundraiser - Credit account
25-9525-000 - Transfer from music - Credit account


I dont know if this is correct way of doing this, but this is how the lady that trained me on this program set it up.

[JohnDMeyers]

Not sure if you typed this in the way you meant to:

01-1110-720 Sound system asset account - Debit account
55-9535-000 - Transfer from fundraiser - Credit account
25-9525-000 - Transfer from music - Credit account

01-1110-720 Sound system asset account - Debit account
01-9535-000 - Transfer from fundraiser - Credit account
01-9525-000 - Transfer from music - Credit account

The above is correct for the last three transactions in your list. You have to debit and credit within the same fund, or your "assets = liabilities + equities" will not hold true.

You could also debit the income accounts in fund 55 and fund 25 instead of the transfer accounts. The way you have it, you will have a negative balance in your transfer accounts in funds 55 and 25. It's not wrong, but I just wanted to point that out.

With the correction I showed above, your way will work.

[AmandaTarter]

Ok, let me make sure I understand what your saying, the correct entry should be:

01-1110-720 - Debit this account
55-9525-000 - Credit this account
25-9525-000 - Credit this account
01-9535-000 - Credit this account
01-9525-000 - Credit this account?
No need to debit any accounts other than the asset account?
Thanks for your help!

[JohnDMeyers]

I think I confused you by only posting a partial list last time. Here is my complete list:

55-1110-700 Chili Lunch - Credit asset account $amount1
55-9101-000 Transfer to General Fund - Debit account $amount1


25-110-730 Hee-Haw - Credit asset account $amount2
25-9101-000 Transfer to General fund - Debit account $amount2

01-1110-720 Sound system asset account - Debit account $amount3 (total)
01-9535-000 - Transfer from fundraiser - Credit account $amount3 (part1)
01-9525-000 - Transfer from music - Credit account $amount3 (part2)

$amount3 (part1) + $amount3 (part2) = $amount3 (total)

[AmandaTarter]

Ok thanks! if there is a different way or easier way to handle theses transactions, please feel free to share!
Thanks so much
Amanda

[jordan2k510]

Visa bill payment question:
Some items on the church visa bill are reimbursed from other church funds (not tracked in PC). The entire bill is paid from the checking account (maintained in PC) How do I accept these checks into PC Accounting without posting the individual amounts as expenses in PC? Would a transfer account work in this situation? If yes, please be specific. I am builidng the JE and need to finish this last bit.

[JohnDMeyers]

Is this what you are describing:

You have a $500.00 Visa bill. You want to cut a $500.00 check in PowerChurch, but only show expenses for $300.00?

I would create another expense account called "expenses tracked elsewhere" and post the amount there.

[jordan2k510]

Yes, exactly. I want to write a check from the church account for the entire amount. The other funds write checks to pay for the items which are not tracked in PC. However, I realize their checks as income (deposited in the checking acct) and track (reimbursement for non budgeted expenses) then as an Additional non budgeted expense which makes the JE out of balance.

Checking 500 CR
PC fund 300 DB
reimbursement 200 DB
addt'l non budg exp 200 CR

[JohnDMeyers]

Checking 500 CR
PC fund 300 DB
reimbursement 200 DB
addt'l non budg exp 200 CR

I am not following your example. You will have to put accounts next to them. For example,
Checking 500 CR (checking account)
PC fund 300 DB (???)
reimbursement 200 DB (money coming into checking from other funds???)
addt'l non budg exp 200 CR (why are you crediting an expense account???)

Also, are you saying that the $500 in your example is the sum of $300 PC fund plus $200 reimbursement, or did the numbers you picked just happen to add up to $500???

Thanks. I'll try to figure it out with a little more info.

[jordan2k510]

Checking 500 CR (checking account -this is the amount of the visa invoice)
PC fund 300 DB (Expense accounts tracked in PC like building maint, social, worship, etc)
reimbursement 200 DB (money coming into checking from other funds not in PC, I do not want to include this amount as income since it is only to pay for some charges on the visa)
addt'l non budg exp 200 CR (why are you crediting an expense account???)- good question, not sure except I do not need to track the 200 in any of the expense accounts since it is paid from funds outside of PC.

Also, are you saying that the $500 in your example is the sum of $300 PC fund plus $200 reimbursement, or did the numbers you picked just happen to add up to $500??? yes this is what I am saying. I used a simpler example similar to your scenario in a previous reply.

[JohnDMeyers]

If the $500 is the sum of the $300 plus the $200 reimbursement, then it seems that the $200 is already being account for as income.

Here are the two parts of the transactions as I see them:

$300 + $200 comes into the church:
DB 01-1110-000 $500 general checking
CR 01-4010-000 $500 general income

$500 is spent on the credit card. $300 for PC expenses. $200 for other things. Then the credit card bill comes in for $500.00

CR 01-1110-000 $500.00 general checking to pay credit card bill
DB 01-5xxx-000 $300.00 PC funds
DB 01-5990-000 $200.00 expenses outside PowerChurch

doesn't that cover it?

The other funds don't need to send you a check, because the money is already in the checking account, and was recorded in the first transaction.

[jordan2k510]

Yes, this is correct and simple enough. Thank you.

[jordan2k510]

How do I keep the expense, Reimbursed by others, out of the General Fund Income and Expense statement as it is not budgeted for the GF and is managed by other fund(s) treasurers.

[JohnDMeyers]

A couple of suggestions.

One is to CR the expense account when the reimbursement money comes in. This is only if you really don't want to show the amount.
i.e.
1) receive general income into the church:
DB 01-1110-000 general checking
CR 01-4010-000 general income

2) spend money on "expenses recorded elsewhere"
CR 01-1110-000 general checking
DB 01-5990-000 expenses recorded elsewhere

3) "receive" reimbursement and erase both the income and expense from the "inc and exp statement"
DB 01-4010-000 general income (erases amount from your income account - decreases general income by the amount used in another fund)
CR 01-5990-000 expenses recorded elsewhere (erases amount and eventually shows zero in this account)
Note: "receive" means "to be informed of" an amount. You don't really make another deposit into checking or you will be recording the same income twice.

I wouldn't do it the way I described above, but that will work, if that is how you want to do it.

The way I would do it is to create an income account and and expense account for expenses recorded elsewhere. Even though they technically do show up on your income and expense statement, they should ultimately be equal in amount and ,therefore, not affect your net income (otherwise known as "unrestricted net assets")

1) receive "elsewhere money" into the church:
DB 01-1110-000 general checking
CR 01-4590-000 income to be used elsewhere

2) spend money on "expenses recorded elsewhere"
CR 01-1110-000 general checking
DB 01-5990-000 expenses recorded elsewhere

No need to record reimbursements with this method. Just verify the amount spent by the "other fund" is the same as the amount that came in for income.