Transfers to other Funds

CJ · Post by CJ » Tue Mar 08, 2005 1:49 pm

In the sample chart of accounts under Income there is a level 2 catagory called "Transfer to other funds" I'm a bit confused. Why would this be considered income if it is being transered to another fund? My thinking would be that it would be classified as an expence in the fund it is coming out of and and classified as and income in the fund that it is transferred to. Could someoe please explain this to me.

Matt · Post by **Matt** » Tue Mar 08, 2005 10:25 pm

I assume you mean under Transfers in the sample Chart of Accounts. The transfers accounts are set up like income accounts in that they have a normal credit balance. However, when you do a transfer from one fund to another you will debit the transfer account in the one fund and credit it in the other. The debit will cause the account to show a negative balance when you run your income and expense statement for that fund.

CJ · Post by CJ » Wed Mar 09, 2005 8:39 am

matt wrote:I assume you mean under Transfers in the sample Chart of Accounts. The transfers accounts are set up like income accounts in that they have a normal credit balance. However, when you do a transfer from one fund to another you will debit the transfer account in the one fund and credit it in the other. The debit will cause the account to show a negative balance when you run your income and expense statement for that fund.

I would imagine we are both talking about the same account (I'm using version 8 and it is called exactly what I indicated earlier)

OK I may be way off here but I'm gonna take a plug at what you just told me... Are you saying that beacuse this is double enrty accounting each fund must show a minumin of 2 enrties for each transaction so.....If I were transfering $500.00 from my general fund (01) into my building fund (02). In my general fund I would credit the main checking account 01-1110 and debit the Transfer to Building Fund account 01-4610. Then do the opposit in the Building Fund; Debit the main checking 02-1110 and credit the transfer to general 02-4610

Oh how I pray that's right

Matt · Post by **Matt** » Wed Mar 09, 2005 8:02 pm

You got it! The nice thing about version 9 is that it has transfer accounts in the 9000 series so that you can keep your transfers segregated from your income and expense accounts. Version 9 will also alert you with a warning message if you attempt to post an unbalanced entry within a fund. Just a couple of the many reasons why you should consider upgrading

CJ · Post by CJ » Wed Mar 09, 2005 10:47 pm

Thank-you sooooooooooooooo much. I mean that from the bottom of my heart. I don't know where I would be with all of this with out this forum.

As for version 9 my request has been unformally approved so now I'm just waiting for the final appoval and I will be one step further on my way

I'm actually starting to feel pretty good about all of this!!!!

I sincerly thank all you you kind people who have been helping me muddle my way through all of this! You have truely been a blessing.

NeilZ · Post by **NeilZ** » Thu Mar 10, 2005 8:35 am

CJ wrote:Thank-you sooooooooooooooo much. I mean that from the bottom of my heart. I don't know where I would be with all of this with out this forum.

As for version 9 my request has been unformally approved so now I'm just waiting for the final appoval and I will be one step further on my way

I'm actually starting to feel pretty good about all of this!!!!

I sincerly thank all you you kind people who have been helping me muddle my way through all of this! You have truely been a blessing.

Good to hear ... when you get your copy, stop by and we'll make sure you install it correctly