I have a savings account to match my fund balances. The cash balance should match the funds on hand (from cash donations) + the general fund balance. The balances do not match.
How do I adjust the general funds account so the cash balance and the funds balance match?
I thought about debit general funds and credit miscellaneous revenue. But the additional revenue will only add to the general fund balance.
Treasurer@Redeemer wrote:One cash account = many fund accounts + general fund balance
All funds are using one checking account, that is, they are all using xx-1110-000 ?? (or similiar)
The total in checking should equal what is in the funds, at least it does here. The Cash Management Report shows that across all funds for me, minus liabilities and Fund Balance Accounts.
Talked to PowerChurch and taking them up on their recommendation to ignore the general fund balance as part of the cash account. Too many balance sheet transactions in the general fund account that do not pertain to the actual contributions / dispersals of funds.
Treasurer@Redeemer wrote:Talked to PowerChurch and taking them up on their recommendation to ignore the general fund balance as part of the cash account. Too many balance sheet transactions in the general fund account that do not pertain to the actual contributions / dispersals of funds.
Thanks,
Mark
The Cash Management Report should not reflect any of those types of transactions. That said, it sounds like it would be a better idea for you to restart accounting at the end of the fiscal year to start with a clean slate.
@JohnDMeyers - I am kinda confused as to why this would occur on software. The comment that was made - "Sometimes the fund balance gets out-of-whack when a debit is made to one Fund and the credit is made to another Fund.". Shouldn't the software enforce the balances to stay in check within the funds? Or is this not a standard that the software follows? Please clarify.
PowerChurch warns you if the debits and credits are out of balance across funds. However, it is a soft warning that you can click through if you choose to save the transaction that way.
@Zorak - Thank you for clarifying what the software does and how it handles the issue. To completely understand how it works I would like to offer an example and see what your thoughts on it would be.
Using the following accounts and funds --> Checking acct, Ground Maintenance, and two funds called Mission and General. The checkbook has 1100.00, whereas 200.00 belongs to Missions and 900.00 for the General Fund. The expense account I will use is Ground Maintenance and it is a 100.00 amount for grass cutting.
Using double sided accounting, I credit the Checking account and choose the Mission Fund. Then, I debit the expense line items called Ground Maintenance and apply that to General Fund. I post this payment and get the soft error saying the credits and debits are out of balance across the funds. I by pass it and let it post anyway.
What would be the balance in the Mission Fund, 200.00 or 100.00? What would the system report for the General Fund balance, 800.00 or 900.00? And what would it report for the total in all funds? Additionally if I ran a PL by fund, where would this transaction end up, the General Fund's activity or the Mission Fund's activity?
The reports will show the activity on the actual accounts you debited and credited. So, in your example, if I followed everything correctly:
Mission Fund Checking would show a $100 balance and the Ground Maintenance expense in the General Fund will show a $100 expense.
If you run a Balance Sheet By Fund, you will see in the Totals column on the far right that the Total Assets does equal the Total Liabilities & Fund Balance. However, if you look at the individual fund columns, one will be $100 over and one will be $100 short.
