Fund Raiser

[BCC]

What is the best way to bookkeep for a fund raiser. For example, the church purchases candy bars to sell to offset costs for a mission trip.
This is what I was thinking....

Initial Candy Bar Purchase
debt - Candy Bar Expense 100.00
credit - Checking 100.00

When Candy Bar Money is Turned in
debit - Checking 150.00
credit - Candy Bar Expense 100.00
credit - Candy Bar Income 50.00

Is this ok, or is there a better way? Thanks!

[BCC]

Can anyone help me with this entry? Thanks!

[NeilZ]

Can anyone help me with this entry? Thanks!

Sorry, I may have missed this when it was first entered.

What is the best way to bookkeep for a fund raiser. For example, the church purchases candy bars to sell to offset costs for a mission trip. This is what I was thinking....

Initial Candy Bar Purchase
debt - Candy Bar Expense 100.00
credit - Checking 100.00

When Candy Bar Money is Turned in
debit - Checking 150.00
credit - Candy Bar Expense 100.00
credit - Candy Bar Income 50.00

Is this ok, or is there a better way? Thanks!

FWIW ... it is never a good idea to credit an expense account, you lose any sort of audit trail, plus you have to really dig into the data in order to find out how much it originally cost if you want to do this again in a few years from now.

If you want to track the income and the expense showing that the amount was recouped upon the sale you can do this:

1. Create two accounts
01-4333-201 - Candy Bar Cost Reimbursement
01-5555-201 - Candy Bar Purchase Expense

You'd adjust the account numbers for your system, but you'll want to keep the Income account away from your normal contribution income. Powerchurch does create a Miscellaneous Income header when it sets up the system, and that's a good place for the account.

When you run a Funds Accounting Sub-Account Report these accounts will show the amount in and amount out, which should zero each other out.

2. Create a separate income account
01-4090-000 - Candy Bar income

Now this could be setup under Unrestricted Income, but since its specifically set aside for Mission trips, you'd probably want to set this up under Temp Restricted income.

Then when you create the transaction for purchase

Credit - 01-1110-000 Checking 100.00
Debit - 01-5555-201 Candy Bar Purchase Exp 100.00

Then when depositing

debit - 01-1110-000 Checking 150.00
credit - 01-4333-201 Candy Bar Cost Reimbursement 100.00
credit - 01-4090-000 Candy Bar Income 50.00

Make sense ??