Transfer to pay an expense item

[jensenec]

I have made a payment from my General Fund (GF-01) account identifying an expense account for it. I now need to transfer the amount from the Building Fund (BF-02) to pay for that item, but also need to transfer that expense account amount from the GF to the BF expense account item. I am not sure how to do this without double counting the amounts in each fund.

01-1110 GF ckg
01-5610 expense
01-9510 Transfer from BF

02-1120 BF ckg
02-5610 expense
02-9050 Transfer to GF

The initial transaction:
CR 01-1110 GF ckg
DB 01-5610 expense

The transfer:
CR 02-1120 BF ckg
DB 02-9050 Trans to GF
DB 01-1110 GF ckg
CR 02-9510 Trans from BF

Now I need to move the listing of the expense item:
From 01-5610 GF expense
To 02-5610 BF expense

How do I do this? It seems like I would be double counting if I just add the DB and CR to the transfer.

Eric

[NeilZ]

I have made a payment from my General Fund (GF-01) account identifying an expense account for it. I now need to transfer the amount from the Building Fund (BF-02) to pay for that item, but also need to transfer that expense account amount from the GF to the BF expense account item. I am not sure how to do this without double counting the amounts in each fund.

01-1110 GF ckg
01-5610 expense
01-9510 Transfer from BF

02-1120 BF ckg
02-5610 expense
02-9050 Transfer to GF

The initial transaction:
CR 01-1110 GF ckg
DB 01-5610 expense

The transfer:
CR 02-1120 BF ckg
DB 02-9050 Trans to GF
DB 01-1110 GF ckg
CR 02-9510 Trans from BF

Now I need to move the listing of the expense item:
From 01-5610 GF expense
To 02-5610 BF expense

How do I do this? It seems like I would be double counting if I just add the DB and CR to the transfer.

Eric

OK .. first question. Why didn't you just write the check from the building fund account?? I'm assuming two separate checking accounts right ??

[jensenec]

The decision was made to make the transaction in Fund 02 after the check was mailed. You are right, there are two checking accounts. As it turns out, funds are spent from Fund 01 until the budget limit is reached. Then funds are taken from Fund 02. I did not know this at the time.

Eric

[NeilZ]

The decision was made to make the transaction in Fund 02 after the check was mailed. You are right, there are two checking accounts. As it turns out, funds are spent from Fund 01 until the budget limit is reached. Then funds are taken from Fund 02. I did not know this at the time.

Eric

OK .. that is weird. It is so much easier to just sequester funds as temp restricted in the one location and checkbook, than to try and figure out if the budget is overdrawn or not.

What I would do is this. This is the easiest way, although I would test it first to see if it does what its supposed to do. Make a backup, do the changes, run some reports, check the trial balance equals zero. If it all looks good, great, if not restore that backup. This may not be the way a CPA would do it, but it will work. Just enter a LOT of information about why this is being done.

1. Write a manual check on fund #02 (assuming both checking accounts are at the same bank, I'm also going to assume that you can transfer funds online) to transfer funds. Use the 02-expense account.

2. Create a "deposit" transaction for the funds in Funds Accounting debiting the 01- checking, and crediting the 01- EXPENSE account as this is basically returning funds and wiping out the expensed amount.

I'm fairly sure this will update the Fund Balance accounts and save you a lot of time trying to figure out transfer accounts.

[jensenec]

Aah! You are right. Why didn't I think of that? This will do what I want. Just as an aside, our church sets a budget for maintenance in the general fund,. Once that limit is reached, maintenance payments come from the Trustee's building fund. Being new this year, I did not realize this. So now I have to back track.

Thanks for your help.

Eric