Wow, trying to get this set up is giving me a headache So forgive me if this question seems pretty basic!
We use one checking account for basically everything--general operating, memeorials, pass-thru money, designated money--camp donations, youth scholarship,etc. How do I enter the beginning balances so that I have the correct total but can show which "pile" the money is in?
Currently I have -01 general fund -02 memorials and -03 pass thru funds and they all share the checking account number 1100-000. SHould I use sub-accounts for the other amounts?
Thanks for helping
Sometimes on-the-job-training really stinks!
Sally
In order for your check register (and everything else) to work properly, you'd need to distribute the amount in your checking account between all the funds. For instance, if you have $1000 in your checking account, you might put $400 into 01-1110, $500 into 02-1110, and $100 into 03-1110. PowerChurch will consolidate on the 4-digit major account number (1110) so you'll see the total of $1000 in for all your 1110 accounts.
If you introduce sub-accounts into the mix (and should be used sparingly, and only if you're sure that's what you want to do), be aware that for most cases, the amounts are still considered part of the major account-especially for things like the check register. From the above example, you could have $100 in 01-1110-000, $200 in 01-1110-001, $75 in 01-1110-002, and $25 in 01-1110-003. That would still be $400 in your 01-1110 account, just distributed between the different subaccounts.
All of these balances would be entered as Year Start Balances in Maintain Chart of Accounts in Fund Accounting. If setting this up mid-year, you'd enter a journal entry (Enter Transactions) that debits the Asset and credits the Fund Balance.
Hopefully, this has done more to enlighten than confuse... If you have more questions, please give us a call.
Thanks. I think that makes sense. Seems like sub-accounts will be the way to go for us--since mostly it's money that was one-time income and is designated to be used for specifc purposes. The ongoing things: I'll set a seperate fund.
Once I get all this set up a I'm going to feel like a genius
I have everything just about ready now, but I have another question:
We have received a grant to assist in paying our pastor's salary; the amount is sent to us monthly, but it does not fully pay the salary. I created an income account for it, but how do I show it as designated for a particular expense account (the pastor's salary in this case)?
There isn't anything in PowerChurch that will allow you to explicitly specify that income tracked in an account is supposed to be used for a specific expense. You could use a subaccount on the income, expense, and bank to see these together on the Functional Statement. There are also several issues that will need to be addressed in Payroll - especially since you're dealing with a partial amount. I think you may need to consult an accountant.
So forgive me if this question seems pretty basic!
