Offsetting a Journal Entry

[Hunger Mountain]

Hi,

In April of 2015 we did a journal entry to move $25 from one PCP account to another. We had a church event where all the money collected went into the same account as the $25. When the event was over all the money collected was moved to the GF account. Unfortunately in that money movement, the $25 went back to the GF. We just realized this happened and created a new journal entry moving $25 from GF back into the original intended account. When we reconciled the books for the month, it shows that journal entry as outstanding as it does not have an offset...how do I offset this journal entry to clear it on the next reconciliation.

Thanks!

[NeilZ]

Hi,

In April of 2015 we did a journal entry to move $25 from one PCP account to another. We had a church event where all the money collected went into the same account as the $25. When the event was over all the money collected was moved to the GF account. Unfortunately in that money movement, the $25 went back to the GF. We just realized this happened and created a new journal entry moving $25 from GF back into the original intended account. When we reconciled the books for the month, it shows that journal entry as outstanding as it does not have an offset...how do I offset this journal entry to clear it on the next reconciliation.

Thanks!

What was the transaction that moved the money? Are these in different Accounting FUNDS?? Normally a funds transfer like this would not show up in the reconciliation as it would not show as a check or deposit to the checking account.

Since you're not saying whether the money was collected into a liability account or income account its kind of hard to give any type of specific answer. However, if you were moving from a liability to income you would have DB the liability and CR the income. The checking (asset) account would not be touched.

Even if you were moving from a liability in one fund to income in a separate fund, using transfer accounts, this again would not show up as an entry in your reconciliation.

Please give us specifics as to where the money was originally and where you moved it.

[Hunger Mountain]

We received a notice from our bank that our savings bank account was going to be closed due to inactivity...we decided to move $25 from our checking account to our savings account at the bank. In order to account for this in PowerChurch we did a journal entry moving the money from GF (general fund) to SR (where we account for savings). During the money movement I spoke of, that $25 moved from SR back to GF. Since the $25 is still in the bank in the savings account, we needed to move it back to SR, which we did in the form of another journal entry. It now shows up in the "Outstanding Checks and Other Subtractions" section of the reconciliation report.

I hope this helps with specifics. Please let me know if there's anymore information you need in order to help answer.

[NeilZ]

We received a notice from our bank that our savings bank account was going to be closed due to inactivity...we decided to move $25 from our checking account to our savings account at the bank. In order to account for this in PowerChurch we did a journal entry moving the money from GF (general fund) to SR (where we account for savings). During the money movement I spoke of, that $25 moved from SR back to GF. Since the $25 is still in the bank in the savings account, we needed to move it back to SR, which we did in the form of another journal entry. It now shows up in the "Outstanding Checks and Other Subtractions" section of the reconciliation report.

I hope this helps with specifics. Please let me know if there's anymore information you need in order to help answer.

How did the money move BACK ?? Is there a transaction that show that movement?

What you should have done was a TRANSFER using the 9000 series accounts using the process as described in the manual on page 226, and copied here:

Code: Select all

Account Description Debit Credit
01-1110-000 Checking Account              CR 750.00
01-9100-000 Transfer to Other Funds     DB 750.00
02-1110-000 Checking Account              DB 750.00
02-9200-000 Transfer from Other Funds CR 750.00

What I would do is this:

1. Do a backup of the Accounting files using the PCPlus backup utility, so you can restore in case something goes awry.
2. Go in Posted Transactions and REVERSE the last funds movement transaction.
3. Enter a TRANSFER transaction as shown above, but change the 02-1110 to your SR-1120 (or whatever number you use) savings account, and the 02-9200 to SR-9200.
4. Post all the transactions, both the reversal and the new transfer.
5. Check to make sure that the checking account shows the credit (reduction in amount) and the savings account shows the debit (increase in amount) by looking at those accounts in the Chart of Accounts and pulling up the DETAILS on each account.

[Hunger Mountain]

The diagram you sent is the exact transfer I originally did. The only difference is that our transfers are in a 6000 series not a 9000...would this affect the transaction? Basically we're looking to clear the transaction from the reconciliation report since we do not have a corresponding transaction on our bank statement as there was not a physical withdrawal amount from our checking account.

[NeilZ]

The diagram you sent is the exact transfer I originally did. The only difference is that our transfers are in a 6000 series not a 9000...would this affect the transaction? Basically we're looking to clear the transaction from the reconciliation report since we do not have a corresponding transaction on our bank statement as there was not a physical withdrawal amount from our checking account.

It can. Do you have transfer accounts setup in the Fund Accounting Preferences. If so, did you change the account numbering series to reflect that? The default Powerchurch setup has numbers 5000 to 9999 as expenses. If you turn on Transfers the system then allocated 9000 to 9999 as the transfer account series.

Unless you physically changed it to use 6000 thru 6999, the system is thinking that you're using expense accounts.

[Hunger Mountain]

I checked this out, and apparently the transfer accounts were never set up. I've only been here for a couple years so I don't know why this wasn't set up. Currently 5000 to 9999 are set up as expense accounts. If I check the "use transfer accounts" box, will this have an affect on the entire accounting system? If we are unable to fix it without messing with the system, is there another way to get around this?

[NeilZ]

I checked this out, and apparently the transfer accounts were never set up. I've only been here for a couple years so I don't know why this wasn't set up. Currently 5000 to 9999 are set up as expense accounts. If I check the "use transfer accounts" box, will this have an affect on the entire accounting system? If we are unable to fix it without messing with the system, is there another way to get around this?

As long as the 9000 series numbers are NOT used, you can activate the transfer account system. If they are, think about moving some of the account numbers below 8999.

[Hunger Mountain]

Hi,

I just set up the transfer accounts and used them, everything transferred correctly but the transfer still shows up on the reconciliation sheet. Did I miss something?

Thank you.

[NeilZ]

Hi,

I just set up the transfer accounts and used them, everything transferred correctly but the transfer still shows up on the reconciliation sheet. Did I miss something?

Thank you.

Without knowing what the actual transaction entries are, its kind of hard to even guess.