how to set a loan to staff

[kimvdh]

our church has given a staff member a no intrest loan. We are just starting pc11 as of oct 1 2011 but have recieved payments since mar 2011. the repayment is set up as an automatic deposit into our general accnt...how do i set this up in pc? do i just add the staff member as a customer under accnt recievable? (it wont be paid off with in the year does that matter?)

[JohnDMeyers]

You can use Accounts Receivable to track the amount received and the amount outstanding with your staff member. Accounts Receivable will not report the outstanding amount to Fund Accounting. PowerChurch works on a cash-basis, so it only records cash-events.

When you receive a $50 payment from the staff member:
DB 01-1110-000 checking $50
CR 01-4180-000 income from repayment of loan $50

If you want to record the "loaned amount" in Fund Accounting, it will look a little weird, since loaning money isn't a "normal" function of a church.

You could create a negative liability amount. A "positive" liability is money that the church "owes". A "negative" liability is money "owed-to" the church.

I will assume you cut a check to the staff member for $1000 in March for the "loan".
Date: 3/1/11
CR 01-1110-000 checking $1000
DB 01-2180-000 income from repayment of loan $1000
(post in October, which is your current month)

You will have a negative amount in liabilities until all the payments are made. If you already received $350 from March to October, you can record this by doing this seven times, and changing the date for each of seven transactions:

Date: 4/1/11 <-repeat and change date for each month
CR 01-1110-000 checking $50
DB 01-2180-000 income from repayment of loan $50
(post in October, which is your current month)

[lhotovec]

I like the idea of creating a negative liability account to track a loan we gave an employee. I have started using PowerChurch this year, but haven't yet added this loan to the accounting, instead tracking it separately until I figured out how to do it in PowerChurch. How can I go back and give the liability account a negative balance now?

[JohnDMeyers]

CR 01-1110-000 checking $1000
DB 01-2180-000 income from repayment of loan $1000
(post in October, which is your current month)

A debit to a liability account is a subtraction. Therefore, this is like subtracting $1000 from zero balance which will show up negative on your reports.