Adjusting Temporarily Restricted Account

[willsell]

We setup a temporarily restricted account For special events 4801
That was releasing to 4999
The problem was the Treasure ignored the release option when cutting checks.
We ended up with $40,000.00 still showing in the temp restricted income
To correct that we did an adjustment by debit 4801 and credit 4999.
When I look at the balance sheet the 3201 account still shows $40,000
What did I do wrong and how can I fix it?

[NeilZ]

We setup a temporarily restricted account For special events 4801
That was releasing to 4999
The problem was the Treasure ignored the release option when cutting checks.
We ended up with $40,000.00 still showing in the temp restricted income
To correct that we did an adjustment by debit 4801 and credit 4999.
When I look at the balance sheet the 3201 account still shows $40,000
What did I do wrong and how can I fix it?

The first thing I'm going to ask are the obvious ones, did you post the transaction? Is the release showing on the Income & Expense report?
When the temp restricted account was setup, was it done through the Maintain List of Donor Restrictions ?

Finally, what version of Powerchurch?

[willsell]

running version 11.55
I did use the donor restriction function to create the 4801 account.
the $40,000 no longer appears on the income and expense under donor restricted.
The account activity shows that 4801 is 0 which is what we wanted.

Donor Restricted on Balance sheet account 3201 still shows $40,000.00

[NeilZ]

running version 11.55
I did use the donor restriction function to create the 4801 account.
the $40,000 no longer appears on the income and expense under donor restricted.
The account activity shows that 4801 is 0 which is what we wanted.

Donor Restricted on Balance sheet account 3201 still shows $40,000.00

Did the I&E show the release ??? It should show the release as a -40000, and then 40000, they should cancel each other out as the funds were transferred to the standard net assets account 3110-000 by the system. It should look something like this:

[willsell]

The release from restriction never appeared on the I&E.
I presume because the treasurer never did releases when cutting checks.

Under donor restricted the account is 0 on the I&E
How do I adjust the 3201 account temporarily restricted to 0 on the Balance Sheet?

[NeilZ]

The release from restriction never appeared on the I&E.
I presume because the treasurer never did releases when cutting checks.

Under donor restricted the account is 0 on the I&E
How do I adjust the 3201 account temporarily restricted to 0 on the Balance Sheet?

From what I can see, there was a disconnect in some way between the 3201 account and the income account.

I'd check the 4801-000 account in the Chart of Accounts, once you have that account info up, click on the DETAILS button listed next to the Fund Account you're using. Check to see what the closing account is. I suspect that it is NOT setup to use xx-3201-000, where xx is the fund account ID.

Let me know what you find.

[willsell]

The fix was simpler than I thought.
It was a movement from restricted closing accounts to the unrestricted equity account.
Db 3201 temp restricted
CR 4999 which closes to unrestricted 3110

[NeilZ]

The fix was simpler than I thought.
It was a movement from restricted closing accounts to the unrestricted equity account.
Db 3201 temp restricted
CR 4999 which closes to unrestricted 3110

I agree .. its not that hard, but I was trying to work with you so it won't happen again. Is the 4801-000 closing to the 3201 ???

[willsell]

Yes the account was setup correctly. I even ran some test transactions to follow the effect.
It all worked exactly as you described. Thanks for your help. Now the challenge will be to
get the treasurer to perform the right transactions.

[NeilZ]

Yes the account was setup correctly. I even ran some test transactions to follow the effect.
It all worked exactly as you described. Thanks for your help. Now the challenge will be to
get the treasurer to perform the right transactions.

OK .. good ... that's what I was worried about.

As far as the Treasurer, sounds like you need to look at the unposted transactions in Funds Accounting before they're posted for a while.