two funds one check

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jaclyn01
Posts: 8
Joined: Wed Mar 14, 2018 10:01 am

two funds one check

Post by jaclyn01 »

Good evening! I wrote a check to the food bank for $750. $250 will come from our designated fund (04) from donations received for that specific purposes and the remaining $500 will come from our operating funds (01). I have no problem with the expense side but get the funds error if I choose on fund or the other. And I think I ran into issues reconciling when I put the bank 2x, one from each fund. Any suggestions?

Thank you! - Jaclyn

NeilZ
Posts: 9159
Joined: Wed Oct 08, 2003 12:20 am
Location: Connellsville, PA
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Re: two funds one check

Post by NeilZ »

jaclyn01 wrote:
Thu May 21, 2020 9:35 pm
Good evening! I wrote a check to the food bank for $750. $250 will come from our designated fund (04) from donations received for that specific purposes and the remaining $500 will come from our operating funds (01). I have no problem with the expense side but get the funds error if I choose on fund or the other. And I think I ran into issues reconciling when I put the bank 2x, one from each fund. Any suggestions?

Thank you! - Jaclyn
I'm guessing that you don't have any expense account for the food bank in Fund 04. Every transaction CREDIT transaction must have an equivalent DEBIT transaction in that fund.

So a $250.00 CREDIT to the checking account must have a $250.00 DEBIT so the final transations in Accounts Payable will look like this (account numbers are examples)

01-1110-000 Checking CREDIT $500.00
01-5510-000 FDBK Exp DEBIT $500.00
04-1110-000 Checking CREDIT $250.00
04-5510-000 FDBK Exp DEBIT $250.00

The check amount will show $750.00. You will get a notice saying that you're using two separate funds, do you want to continue. Just click the YES button. This transaction will properly update each fund.

To create the expense account in Account 04, just head to FUND Accounting -> Setup -> Maintain Chart of Accounts, and look for the existing Food Bank expense account. Click on the Add to Fund button to add it to fund 04. Then write the check.

To get around this issue of separate accounting funds in this case, I would have created a Donor Restricted Fund in Accounting Fund 01, then all you would have to do is release $250.00 from that fund when writing the check, no additional Accounting Fund needed, and the program will track the funds in that restricted fund for you.
Neil Zampella

Using PC+ since 1999.

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