Moving Money Between Funds

[RLM]

Hopefully someone will tackle this and help me understand what transactions are required for the scenario laid out below:
____________________________________
$550 is transferred from (03) MISSIONS FUND to (01) GENERAL FUND for a two-fold purpose:

01-1110-365 General Fund - Missions (D) $233.31
01-1110-000 General Fund Checking (D) $316.69
01-9503-000 Transfer IN from Fund (03) (C) $550.00
03-1110-000 General Fund Checking (C) $550.00
03-9010-000 Transfer OUT to Fund (01) (D)$550.00

Purpose #1- $233.31 was going to the missionary that hosted the overseas trip.

Purpose #2-The remaining balance of $316.69 was to be applied toward the Office Administrator's part-time wages ($294.18) for the two weeks she was on the Missions trip as well as ($22.510) to cover the churches payroll tax liability. This needed to be done so that our budget didn't take a HIT because we had back-filled her hours by paying additional wages to someone else.

Rather than 'clutter' the post with more detail I hope that someone will be able to help me from here. I have vapor-locked my brain playing out various scenarios, none of which accomplishes what I need.

{POWERchurch Forum Help Goes Here}

[JohnDMeyers]

Looks good so far. I wouldn't change anything that you did.

The only thing left to do is cut the checks.

01-1110-365 (C) $233.31 for missions expense
01-5xxx (D) $233.31 missions expense

01-1110-000 (C) $316.69 for admin wages and the tax
01-5yyy (D) admin wages $294.18
01-5zzz (D) payroll tax $22.51

Unless I am misunderstanding something, that's it.

[RLM]

Thanks John, I knew that I could depend on hearing from you.

Part of my dilemma is that the checks have both already been cut prior to any adjusting transactions being made. Now I am faced with creating entries that will make it all balance.

What I didn't state earlier (so I wouldn't clutter things up and create confusion) was that there was an earlier deposit for $xxxx.xx that was made for the missionary where the funding had been rolled into a PASS THROUGH liability account.

The check that was issued to the missionary was for the $xxxx.xx amount PLUS the $233.31 that I have TRANSFERRED from the (03) MISSIONS FUND.

01-1110-365 General Fund - Missions (D) $xxxx.xx
01-2320-000 Missionary (hypothetical) (C) $xxxx.xx

{Sure you want to tackle this?}

Now, after making the TRANSFER, I need to know how to roll the $233.31 into the PASS THROUGH account as well as hit the correct payroll accounts so that the budget is not negatively impacted by paying both employees.

[JohnDMeyers]

01-1110-365 General Fund - Missions (D) $233.31
01-1110-000 General Fund Checking (D) $316.69
01-9503-000 Transfer IN from Fund (03) (C) $550.00 <---- change to liability 01-2320-000
03-1110-000 General Fund Checking (C) $550.00
03-9010-000 Transfer OUT to Fund (01) (D)$550.00

When you pay the check:
CR 01-1110-000 checking
DB 01-2320-000 liability

In words, what this says is that you are transferring cash from FUND 03, and receiving it AS A LIABILITY in FUND 01, to be paid to a missionary.

In a write up, I would explain it this way. The money in FUND 03 is inherently owed to someone, given that it is designated as missions money. When we release the money from FUND 03, it shows up as a true liability (as opposed to an inherent liability) in the General Fund, and then leaves our church in the form of cash to some missionary.

Hope that helps.

[RLM]

That makes sense! John, you have added years to my life, thank you...