Creating Temporarily Restricted Fund

[sica]

I need to create a new temporarily restricted fund and then transfer money from our checking account to this fund.
For the new temporarily restricted fund I have created an equity account, an income account and a release account.
I found directions from someone elses question on the forum for transfering funds; however, all of my accounts start with 01. The directions refer to accounts that start with 01 and 02. Example checking account 01-1110 and checking account 02-1110. I can't find anything in my book that refers to accounts starting with 02. Do I need to create new accounts?
Can someone please help.
Thanks,
Tracey

[sica]

I'm not sure if I included enough information in my question.

We have only one checking account. The fund I am creating and trying to transfer money to is to track money that is being donated for a one time purchase.

I would greatly appreciate it if someone can help me get this straightened out.
Thanks,
Tracey

[Jeff]

You don't have to necessarily create a new fund to track this restricted amount. An accounting fund is another complete chart of accounts including assets, equity, income & expenses. Depending on your reporting needs you can track multiple restrictions in one accounting fund.

For the new temporarily restricted fund I have created an equity account, an income account and a release account.

It sounds like you have already setup everything needed to track the restriction. You need a restricted equity account, income & release to track each restriction. When you run the balance sheet do you see a amount set aside for the restriction in the equity section? Also take a look at the changes in equity report and the cash managment report. These reports should also show the current restricted amounts.

You might want to read the document located here: http://www.powerchurch.com/support/answ ... icle_id=58 this document is also on your version 9 CD. It will explain more about how to show donor restricted contributions and how the release accounts work.

[sica]

Since it doesn't sound like it is necessary, I'm not going to create a new fund. However, I'm still confused about transfering money. Currently the money is in the general fund 01 checking account. I need it to appear in the equity account "Youth Fund" (temporarily restricted) on the balance sheet. The directions I am finding are good, however, they're for systems set up with a general fund 01 and a temporarily restricted fund 02. I only have one fund. How can I get this money to appear in the youth fund which is part of my general fund 01?
Thanks,
Tracey

[Jeff]

Tracey,

Your checking account is going to hold your balance that is currently in the bank. The youth temp restricted equity account is going to tell you that you have to hold some of your money to cover that restriction. After you have everything setup you will be able to use the cash management report to show the current balance in the checking account minus the amounts you need to hold for the current available balance.

Have you been using Fund Accounting in PowerChurch Plus? If so the journal entry to establish the Youth restriction is a little different than if you are new to the accounting module. In general, to establish the youth restriction after you have been using PCPLUS for a while, you credit the Youth temp. restricted equity account and debit the unresticted equity account. Figuring out the correct amount can be a tricky though.

You have two ways of doing this:

1) Create a new youth income account. Make sure contribution funds are changed to use this new account. (if use the add donor restriction assistant, it will do this for you) Make a journal entry to credit the youth equity and debit the unrestricted equity. This will show the youth restriction from this time forward. If you run a report from before this period it will look like it has always been. You should also make the old youth income accounts inactive so they don't get accientally used.

2) The second way is using your existing youth income account. This way is harder because you will have to change the setup of the account and this changes past as well as future reports. First find the youth income account in maintain chart of of account. Change the close to account to the new youth equity account. (or use the add donor restriction assistant, it will do this for you) Next run a balance sheet, you should now see a total in the youth equity account. This total is the amount of income that has come into the youth income account. What this does not show is the amount of youth money that has been used in this same period, so we have to add a trasaction to tell it this amount. Say after changing the close to the youth equity now shows a balance of 6,500 and we know the balance is supposed to be 1,250. We need to add a transaction to debit the youth account 5,250 (6500-1250) and credit the unrestricted equity 5,250. This amount is the amount that the youth department has already spent.

The down side of this method is if you go back and run a report prior to this period, the balance in the youth equity account will be wrong. The total equity will still be right but the balances in the individual equity accounts will be wrong. The upside of method 2 is that you can use your existing accounts and don't have to create any new income accounts. (You still need to create the equity and release accounts for the youth restriction.)

I hope this helps and hasn't confused you more.

[sica]

Thank you very much. Option #1 worked perfect.
Tracey

[willsell]

Where do I find the "add donor restriction assistant"
I want to setup a restricted fund.
I,m stuck on the use of the above function.

[NeilZ]

Where do I find the "add donor restriction assistant"
I want to setup a restricted fund.
I,m stuck on the use of the above function.

There is no 'donor restriction assistant', in v10.4, you have the Maintain Donor Restrictions. If you press the F1 key, and bring up help, do a search on Restricted Income it will give you more info.

You will have to have Release Accounts enabled.

[Zorak]

When you click the Add button on the Maintain Donor Restrictions, it walks you through a few steps of adding a new donor restriction. The manual calls this the Add Donor Restriction assistant

[willsell]

Where do I find the "add donor restriction assistant"
I want to setup a restricted fund.
I,m stuck on the use of the above function.

There is no 'donor restriction assistant', in v10.4, you have the Maintain Donor Restrictions. If you press the F1 key, and bring up help, do a search on Restricted Income it will give you more info.

You will have to have Release Accounts enabled.

Thanks

I did find it after looking ten times through the menus (that's what happens when you burn the candles)

[NeilZ]

When you click the Add button on the Maintain Donor Restrictions, it walks you through a few steps of adding a new donor restriction. The manual calls this the Add Donor Restriction assistant

OK .. tomAto ... toMAto ...

Happy New Year !!