I am trying to transfer money from an Income account (Memorials) to an Asset account (the actual Memorial Fund Checking account).
I printed a check from the Operating account and deposited it into the Memorial Fund C/A. I realized it decreased my Operating A/C balance, so I tried to make corrections involving the Memorials Income A/C. Needless to say, I have made a mess and have reversed most entries, and still am not balanced.
Any recommendations, as I am brain dead, at this moment.
You can't transfer money from an income account to an asset account. Normally, money comes in and it increases the asset. The income account you use in that transaction will increase as well. The income account doesn't represent actual money. Think of it as a representation of the amount of money deposited into the asset for a certain type of income. I.E. DB asset $50 and CR general income $50. That represents that $50 of the money in the asset came in as general income.
You can transfer money from one asset to another. I.E. moving money from a savings account to a checking account to cover a bill.
You can transfer money from one income account to another. I.E. the church decides to give the Youth group some money for a trip, DB general income and CR Youth income. The money in the bank does not change. You have simply decreased the general income by the amount given to the Youth. They now have more money set aside for them, but there was not an increase in the amount of money actually in the bank.
To move money from say your general checking account to the Memorial checking account would look like CR general checking (reducing it) and DB Memorial checking account (increasing it). So you are transferring money from one bank account to another. If income needs to move, then you would also DB an income account (reducing it) and CR Memorial income (increasing it).
Matt, I was able to do this...I hope it helps you to help me.... The lines with stars beside them are the accounts that I was talking about. People contribute $ for "Memorials "- #4012 and the funds are in the Operating Checking Account #1110. After awhile, I transfer those funds to the actual Memorial Checking Account #1230.
Aimwell Presbyterian Church
Chart of Accounts
Level / Description Acct-Sub Type DB/CR Category Active
11/08/2013 08:48 PM Fund: 01 - GENERAL FUND Page: 1
1. ASSETS 1000 Group DB Asset Y
2. BANK ACCOUNTS 1050 Group DB Asset Y
3. CHECKING ACCOUNT 1100 Group DB Asset Y
4. Checking (Operating) 1110 Detail DB Asset Y ************************************
3. OTHER ACCOUNTS 1200 Group DB Asset Y
4. Memorial Fund 1230 Detail DB Asset Y *********************************************
2. INVESTMENTS 1300 Group DB Asset Y
4. CD#1043, Cemetery Fund 1310 Detail DB Asset Y
4. CD#1051, Memorial Fund 1320 Detail DB Asset Y
1. LIABILITIES 2000 Group CR Liability Y
2. CURRENT LIABILITIES 2010 Group CR Liability Y
3. TAXES PAYABLE 2205 Group CR Liability Y
4. Federal Withholding 2215 Detail CR Liability Y
4. Social Security 2217 Detail CR Liability Y
4. Medicare 2219 Detail CR Liability Y
4. State Taxes Payable 2220 Detail CR Liability Y
3. OTHER DEDUCTIONS 2250 Group CR Liability Y
4. Health Insurance Withheld 2270 Detail CR Liability Y
4. Retirement Withheld 2280 Detail CR Liability Y
2. LONG-TERM LIABILITIES 2600 Group CR Liability Y
3. MORTGAGES & LOANS 2610 Group CR Liability Y
1. NET ASSETS 3000 Group CR Fund Balance Y
2. UNRESTRICTED 3100 Group CR Fund Balance Y
4. Operating Fund Balance 3110 Detail CR Fund Balance Y
1. INCOME 4000 Group CR Income Y
3. CONTRIBUTION INCOME 4010 Group CR Income Y
4. Tithes & Offerings 4011 Detail CR Income Y
4. Memorials 4012 Detail CR Income Y ******************************************
3. OTHER INCOME 4050 Group CR Income Y
4. Banking Interest 4051 Detail CR Income Y
4. Investment Interest 4052 Detail CR Income Y
1. EXPENSES 5000 Group DB Expense Y
2. FIXED EXPENSES 5010 Group DB Expense Y
3. PASTORAL STAFF 5050 Group DB Expense Y
4. PASTORAL SALARIES 5055 Group DB Expense Y
5. SENIOR PASTOR 5060 Group DB Expense Y
6. SP Salary 5061-001 Detail DB Expense Y
6. SP Housing 5062-001 Detail DB Expense Y
6. SP Retirement 5063-001 Detail DB Expense Y
6. SP Health Insurance 5064-001 Detail DB Expense Y
6. SP Auto Allowance 5066-001 Detail DB Expense Y
6. SP General Assembly 5067-001 Detail DB Expense Y
6. SP Book Fund 5068-001 Detail DB Expense Y
6. SP Pulpit Supply 5069 Detail DB Expense Y
5. MINISTER OF MUSIC 5080 Group DB Expense Y
6. MM Salary 5081-002 Detail DB Expense Y
6. MM Housing 5082-002 Detail DB Expense Y
5. YOUTH PASTOR 5090 Group DB Expense Y
6. YP Salary 5091-003 Detail DB Expense Y
6. YP Housing 5092-003 Detail DB Expense Y
3. SUPPORT STAFF 5150 Group DB Expense Y
4. STAFF SALARIES 5151 Group DB Expense Y
5. Secretary 5152 Detail DB Expense Y
5. Treasurer 5153 Detail DB Expense Y
Aimwell Presbyterian Church
Chart of Accounts
Level / Description Acct-Sub Type DB/CR Category Active
11/08/2013 08:48 PM Fund: 01 - GENERAL FUND Page: 2
5. Childcare 5154 Detail DB Expense Y
5. Custodian 5155 Detail DB Expense Y
5. Organist 5156 Detail DB Expense Y
5. Music Director 5157 Detail DB Expense Y
4. BENEFITS 5170 Group DB Expense Y
5. Staff Insurance 5171 Detail DB Expense Y
5. Staff Retirement 5172 Detail DB Expense Y
3. EMPLOYER EXPENSES 5300 Group DB Expense Y
4. Employer Payroll Taxes 5305 Detail DB Expense Y
4. Workers Comp Insurance 5310 Detail DB Expense Y
3. ADMINISTRATIVE EXPENSE 5350 Group DB Expense Y
4. Advertising 5351 Detail DB Expense Y
4. Bank Charges 5352 Detail DB Expense Y
4. Office Supplies 5353 Detail DB Expense Y
4. Phone/Internet/Postage 5354 Detail DB Expense Y
4. Printing 5355 Detail DB Expense Y
4. Professional Services 5356 Detail DB Expense Y
4. Copier Lease 5357 Detail DB Expense Y
4. Seminars & Training 5358 Detail DB Expense Y
4. Banking supplies:cks,dep 5359 Detail DB Expense Y
3. UTILITIES 5380 Group DB Expense Y
4. 5381 Detail DB Expense Y
4. Cell Phones 5382 Detail DB Expense Y
4. Electricity 5384 Detail DB Expense Y
4. Water & Sewer 5385 Detail DB Expense Y
4. Gas 5386 Detail DB Expense Y
4. Waste 5387 Detail DB Expense Y
3. BUILDINGS & GROUNDS 5400 Group DB Expense Y
4. Building Insurance 5401 Detail DB Expense Y
4. Janitorial Supplies 5402 Detail DB Expense Y
4. Pest Control 5403 Detail DB Expense Y
4. Building Repairs 5404 Detail DB Expense Y
4. Lawn Maintenance 5405 Detail DB Expense Y
4. Property Maintenance 5406 Detail DB Expense Y
4. Decorating 5407 Detail DB Expense Y
4. Kitchen/Bathroom Supplies 5409 Detail DB Expense Y
3. MORTGAGE/LOANS 5410 Group DB Expense Y
4. Mortgage Principal 5411 Detail DB Expense Y
4. Mortgage Interest 5412 Detail DB Expense Y
3. VEHICLES 5420 Group DB Expense Y
4. Vehicle Insurance 5421 Detail DB Expense Y
4. Tags/License 5422 Detail DB Expense Y
4. Vehicle Maintenance 5423 Detail DB Expense Y
4. Vehicle Fuel 5424 Detail DB Expense Y
3. CHRISTIAN EDUCATION 5450 Group DB Expense Y
4. Education-Other than SS 5451 Detail DB Expense Y
4. Sunday School Curriculum 5452 Detail DB Expense Y
4. Men's Ministry 5453 Detail DB Expense Y
4. Women's Ministry 5454 Detail DB Expense Y
4. Youth Ministry (TEENS) 5455 Detail DB Expense Y
4. Vacation Bible School 5456 Detail DB Expense Y
4. Library 5457 Detail DB Expense Y
3. WORSHIP 5470 Group DB Expense Y
4. Choir & Music 5471 Detail DB Expense Y
Aimwell Presbyterian Church
Chart of Accounts
Level / Description Acct-Sub Type DB/CR Category Active
11/08/2013 08:48 PM Fund: 01 - GENERAL FUND Page: 3
4. Worship Supplies 5472 Detail DB Expense Y
4. Audio/Visual Equipment 5473 Detail DB Expense Y
3. LAY MINISTRY 5480 Group DB Expense Y
4. Hospitality/Bereavement 5481 Detail DB Expense Y
4. Fellowship/Outreach/Evang 5482 Detail DB Expense Y
4. Pastor Appreciation 5483 Detail DB Expense Y
4. Tape/CD Ministry 5484 Detail DB Expense Y
4. Flowers/Gifts 5485 Detail DB Expense Y
3. VISITOR'S/NEW MEMBERS 5490 Group DB Expense Y
4. 5491 Detail DB Expense Y
4. Visitor Materials 5493 Detail DB Expense Y
3. MISSIONS 5500 Group DB Expense Y
4. Committee Recommendations 5501 Detail DB Expense Y
4. Mission Trips 5502 Detail DB Expense Y
4. YOUTH Outreach 5503 Detail DB Expense Y
3. MISCELLANEOUS EXPENSE 5510 Group DB Expense Y
Aimwell Presbyterian Church
Chart of Accounts
Level / Description Acct-Sub Type DB/CR Category Active
11/08/2013 08:48 PM Fund: 02 - DESIGNATED FUND Page: 4
1. ASSETS 1000 Group DB Asset Y
3. CHECKING ACCOUNT 1100 Group DB Asset Y
4. Checking (Designated) 1110-200 Detail DB Asset Y
2. DESIGNATED INCOME 3200 Group CR Fund Balance Y
4. Cemetery Fund Balance 3201-201 Detail CR Fund Balance Y
4. Choir Fund Balance 3202-202 Detail CR Fund Balance Y
4. Deacon Mercy Ministries 3203-203 Detail CR Fund Balance Y
4. Playground Fund Balance 3204-204 Detail CR Fund Balance Y
4. Prayer Garden Fund 3205-205 Detail CR Fund Balance Y
4. Youth Fund Balance 3206-206 Detail CR Fund Balance Y
4. Lillies/Poinsettias Fund 3207-207 Detail CR Fund Balance Y
4. Operation Christmas Child 3208-208 Detail CR Fund Balance Y
4. Mission Work/Fairmont, WV 3209-209 Detail CR Fund Balance Y
4. Ridge Haven Fund 3210-210 Detail CR Fund Balance Y
4. Flwshp/Evnglsm:Cookout,VB 3211-211 Detail CR Fund Balance Y
4. Faith Mission, J. Glover 3212-212 Detail CR Fund Balance Y
2. DESIGNATED INCOME 4200 Group CR Income Y
4. Cemetery Fund Income 4201-201 Detail CR Income Y
4. Choir Fund Income 4202-202 Detail CR Income Y
4. Deacon Mercy Min Income 4203-203 Detail CR Income Y
4. Playground Fund Income 4204-204 Detail CR Income Y
4. Prayer Garden Income 4205-205 Detail CR Income Y
4. Youth Fund Income 4206-206 Detail CR Income Y
4. Lillies/Poinsettias Incom 4207-207 Detail CR Income Y
4. Operation Christmas Child 4208-208 Detail CR Income Y
4. Mission Work/Fairmont, WV 4209-209 Detail CR Income Y
4. Ridge Haven Income 4210-210 Detail CR Income Y
4. flwshp/Evnglsm:cookout,VB 4211-211 Detail CR Income Y
4. Faith Mission, J. GLover 4212-212 Detail CR Income Y
2. DESIGNATED EXPENSES 6200 Group DB Expense Y
4. Cemetery Fund Expense 6201-201 Detail DB Expense Y
4. Choir Fund Expense 6202-202 Detail DB Expense Y
4. Deacon Mercy Min Expense 6203-203 Detail DB Expense Y
4. Playground Fund Expense 6204-204 Detail DB Expense Y
4. Prayer Garden Expense 6205-205 Detail DB Expense Y
4. Youth Fund Expense 6206-206 Detail DB Expense Y
4. Lillies/Poinsettias Expen 6207-207 Detail DB Expense Y
4. Oper. Christmas Child Exp 6208-208 Detail DB Expense Y
4. Mission Work/Fairmont, WV 6209-209 Detail DB Expense Y
4. Ridge Haven Expense 6210-210 Detail DB Expense Y
4. Flwshp/Evnglsm:cookout,VB 6211-211 Detail DB Expense Y
4. Faith Mission, J. Glover 6212-212 Detail DB Expense Y
I am assuming the original contribution ($50) looked like this:
DB 01-1230-000 Memorial Checking $50
CR 01-4012-000 Memorial Income $50
Then you printed a check, like this:
CR 01-1110-000 Operating Checking $50
DB 01-6201-201 Cemetery Expense $50
Then, you saw that the Operating Checking decreased, so you did this:
DB 01-1110-000 Operating Checking $50
CR 01-4012-000 Memorial Income $50
The correction entry (after reversing all other attempts) would look like this:
DB 01-4012-000 Memorial Income $50
CR 01-1230-000 Memorial Checking $50
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This helps tremendously! Based on your description, when you write the check to transfer the money received for Memorials from the Operating Checking account to the Memorial Checking account, post it using the following entry:
Debit 1230 Memorial Fund
Credit 1110 Operating Checking
When I wrote the check using the 2 accounts you mentioned, it decreased the operating account. I needed to reduce the 4012 (Memorials income account).
I appreciate everyone's help...I am still trying to figure it out and I may be getting closer.
I sense that I am missing something here. Can you explain why you need to reduce the 4012 (Memorials) income account and what your rationale for doing so is?
Matt, When I receive the money for "Memorials" I CR that income account (4012). I don't put it in the actual Memorial checking Account (separate from the operating account-1110), until I have a lot to transfer. So, the $ is just sitting in this income account, until I actually make a deposit and have it transferred out of the operating account into the Memorial Checking account. (1230)
Maybe, in the future, I need to change the way I post the initial contribution of memorials, from the members. (If I ever get this straightened out!)
Hope I explained it OK........
mlcrumpton wrote:Matt, When I receive the money for "Memorials" I CR that income account (4012). I don't put it in the actual Memorial checking Account (separate from the operating account-1110), until I have a lot to transfer. So, the $ is just sitting in this income account, until I actually make a deposit and have it transferred out of the operating account into the Memorial Checking account. (1230)
Maybe, in the future, I need to change the way I post the initial contribution of memorials, from the members. (If I ever get this straightened out!)
Hope I explained it OK........
OK .. from someone just looking at this exchange .. you've just totally confused me.
What do you do with the checks and/or cash that is given to Memorials?? If you're reflecting this income through Contributions and then posting to Funds Accounting, you have to show debit & credit accounts.
They can't just be sitting in the office in a cigar box
Yes, in order to do the accounting properly the dollars need to stay in the 4012 income account. Understand the logic of letting the contributions accumulate in the operating account--1110--until there is a decent sized amount to do a transfer and then doing a transfer to the Memorial checking account. But when this transfer is done all you need to do is debit the Memorials checking account and credit the Operating checking account.
I also noticed in reviewing your chart of accounts that you do not have a fund balance account set up for your Memorials income. Based on this thread it sounds like you need to set one up so that you can separately track these funds. Once you set it up change the close to account on the 4012 account to this new fund balance account.
Matt wrote:Yes, in order to do the accounting properly the dollars need to stay in the 4012 income account. Understand the logic of letting the contributions accumulate in the operating account--1110--until there is a decent sized amount to do a transfer and then doing a transfer to the Memorial checking account. But when this transfer is done all you need to do is debit the Memorials checking account and credit the Operating checking account.
I also noticed in reviewing your chart of accounts that you do not have a fund balance account set up for your Memorials income. Based on this thread it sounds like you need to set one up so that you can separately track these funds. Once you set it up change the close to account on the 4012 account to this new fund balance account.
Matt, I had already CR and DB the accounts as you suggested; but it is still showing the $ in the 4012 income account. I need to reduce that account.
I thought I didn't need a Fund Balance Account if there were no expenses connected to it; only income. Maybe a transfer account would help?
(I, with everyone's help, will figure this out, if it kills me! LOL)
NeilZ, no cigar box...LOL..the funds are in the Operating Checking Account.
I am not understanding why you need to reduce the income account (4012). On the surface this does not make sense. Can you explain why this account needs to be reduced?
