Post to New Account from Existing Account

[KPegram]

We have established a new checking account 1114 B&G. I am to move money from our established 1110 General Checking to this account. I have written a check and debited the line 5743 from which the money was to be removed. I credited 1110.

My question is, what debit account and what credit account do I use to reflect that the new checking account 1114 B&G has received the money?

Thank you,

[NeilZ]

We have established a new checking account 1114 B&G. I am to move money from our established 1110 General Checking to this account. I have written a check and debited the line 5743 from which the money was to be removed. I credited 1110.

My question is, what debit account and what credit account do I use to reflect that the new checking account 1114 B&G has received the money?

Thank you,

In reality, you are moving money from one checking account to another. So all that was really necessary was the Credit to 1110, and the Debit to 1114. This is (apparently) money that was already listed as income to the church, so you can't show any Credit to income.

What exactly is account 5743? This would aid us in understanding what you are trying to do. Are the funds going to be used against another expense account?

[KPegram]

5743 B&G long term is an expense account. Should I void the check and
Credit to 1110, and the Debit to 1114?

[NeilZ]

5743 B&G long term is an expense account. Should I void the check and
Credit to 1110, and the Debit to 1114?

OK ... there are some assumptions I'm making:

I'm assuming that the two checking accounts are staying in the same Accounting Fund, right? If so, and if the accounts are at the same bank, you should be able to transfer the funds without using a check. If so, then I would void the check, and just create a Funds Accounting transaction with all supporting details. If they are at separate banks, then that's a different issue.

If they are at separate banks, don't void the check but make the check out to the church. With the Credit to 1110, and the debit to 1114, and put 'for deposit only' on the back. Its the old make the check to cash type of deal, but you really don't want it listed to 'cash'.

Now, what will really throw a monkey wrench in the mix is if these funds are being used in a different Funds Accounting fun. I hope not.

[KPegram]

Yes both assumptions are correct...same accounting fund, same bank. I voided the check.

I do not know how to post this.

Funds are being removed from 5743 B&G Maintenance and being put into NEW checking account 1114 B&G. The funds currently are in established account 1110 FBC General.

Please help. Thank you!

[NeilZ]

Yes both assumptions are correct...same accounting fund, same bank. I voided the check.

I do not know how to post this.

Funds are being removed from 5743 B&G Maintenance and being put into NEW checking account 1114 B&G. The funds currently are in established account 1110 FBC General.

Please help. Thank you!

OK ..

1. 5743 is an expense account. There are no funds in this account, there is a budgeted amount, but the funds come from 1110- which appears to be your general checking account.

2. You will be moving funds from 1110 to 1114. Basically, it appears that you're moving the budgeted amount to the new checking account.

Let me give an example using your church based on what you told me, amount is an example.

The church budgeted an amount for Building & Grounds Maintenance for the year of $1000.00. The church board has now decided that the B&G funds will be kept separate from the normal operations fund in a separate checking account. You will then enter a transaction under Funds Accounting to DEBIT the new checking account (1114) $1000.00, and CREDIT the old checking account (1110) $1000.00. All the reasoning and authorization citations should be listed in the transaction comments box.

This moves the money to the new checking account. As I mentioned since its at the same bank, I'm going to assume that they will allow you to move the money through a funds transfer at the bank. I can do this at my bank online, I'm assuming that you can do the same at the bank you're using.

In future, when you write checks from the new account, you will be using 5743-B&G Maintenance as the DEBIT account and 1114-B&G Checking as the CREDIT account. This should be adjusted in your Accounts Payable module under any B&G maintenance contractors you may use.

The system will then update all the proper 3000- level asset accounts automatically.

[KPegram]

Thank you for the posting details!!!! Your example is exactly what happened.

Do I need to I need to reflect that I have removed the $1000.00 from 5743-B&G Maintenance expense line? If so, how do I post this?

[NeilZ]

Thank you for the posting details!!!! Your example is exactly what happened.

Do I need to I need to reflect that I have removed the $1000.00 from 5743-B&G Maintenance expense line? If so, how do I post this?

OK ... will you be using this expense account when writing checks from the new account?? If so, you should NOT do anything to the budget line on this account.

Please remember. An expense account shows money that HAS BEEN SPENT, there are no funds in this account. What you have is a BUDGET line that says we are PLANNING to spend $1000.00 (or less) on maintenance this year. This is for yearly planning purposes.

If you're not going to use this account for expenses paid from the new checking account, but you are going to have a NEW expense account that will be used, then you adjust the BUDGET by adding a budget amount to the new account, and reducing the budget amount on the old expense account.

Again, answering these questions will help me to help you.