Setting up multiple funds, each with their own bank account

[GSA Candace]

We just bought PowerChurch for 2021. I used set-up assistant to enter all the information for our General fund using our main bank account. We also have a Building fund, Benevolent fund, Memorial fund, etc. each with their own bank account and some have linked investments and/or liabilities. I can add the Funds in Maintain Chart of Accounts, but only the set-up assistant has a place for bank account balances, outstanding cheques, liabilities, etc. How do I enter in the opening balances for the secondary bank accounts and investments once I close the assistant?

[Zorak]

This is done by entering a transaction in Accounting > Fund Accounting > Enter Transactions.

To add a beginning balance to a new bank account in a new fund would look something like the following:

02-1120-000 Checking (Debit) $500
02-3110-000 Unrestricted Equity (Credit) $500

If you are tracking the equity (AKA fund balance, net assets) in separate, restricted accounts in each fund, then you would instead choose the appropriate equity account in that fund.

[GSA Candace]

Thanks Zorak, I'll try that.

[cmdouglas0330]

I have a similar issue. For 2020; Our location has a Main Checking Acct; A separate Savings Acct for our Building Fund (where we deposit the funds that come into our main checking acct for the building fund); and later in 2020 we closed the Saving Bldg Fund acct; and opened a MMA Savings. I am trying to reflect all of that activity within PCH but seem to be missing some pieces because the reporting when trying to "move" funds from one restricted acct under the Main Checking in Fund 01 to the Savings restricted acct under Fund 02 is off. Would I do as you have listed here...Set up the Saving Bldg Fund Acct: 02-1120-000 Checking (Debit) $500 // 02-3110-000 Unrestricted Equity (Credit) $500 OR would I use the Restricted Equity acct for the Bldg Fund? Next, would I then Release Funds from the appropriate restricted acct to the Unrestricted or Restricted Equity Acct (depending on your response); and finally create a transfer between the Funds in 02 from the Closed Savings Bldg Acct to the Opened MMA Savings Acct? This is my dilemma.

[NeilZ]

I have a similar issue. For 2020; Our location has a Main Checking Acct; A separate Savings Acct for our Building Fund (where we deposit the funds that come into our main checking acct for the building fund); and later in 2020 we closed the Saving Bldg Fund acct; and opened a MMA Savings. I am trying to reflect all of that activity within PCH but seem to be missing some pieces because the reporting when trying to "move" funds from one restricted acct under the Main Checking in Fund 01 to the Savings restricted acct under Fund 02 is off. Would I do as you have listed here...Set up the Saving Bldg Fund Acct: 02-1120-000 Checking (Debit) $500 // 02-3110-000 Unrestricted Equity (Credit) $500 OR would I use the Restricted Equity acct for the Bldg Fund? Next, would I then Release Funds from the appropriate restricted acct to the Unrestricted or Restricted Equity Acct (depending on your response); and finally create a transfer between the Funds in 02 from the Closed Savings Bldg Acct to the Opened MMA Savings Acct? This is my dilemma.

I would do as I suggested in the original thread you started. This example is for creating a beginning balance in a new checking account. It can be used for creating a new savings account that is NOT temporarily restricted.

However, if this Building Fund Account is ONLY used for savings of funds for a future purchase of property as you mentioned, then its ALREADY restricted in the fact that its a separate bank account (savings) and its completely separated from the normal Operations Fund Account 01. There's no need to create a temp restricted account in the Fund 02.

That said ... you didn't say in the original thread that you did not yet create the savings account. If this is true, then you can use this method by cutting the check in 01, depositing it in the savings account, and then use the example to create the beginning balance in the savings account.

Don't get confused about what you should be doing on a normal basis every week.

[cmdouglas0330]

Thank you Neil! However, I thought I mention in the original that I had a Savings account to start. We have a Savings acct at the start of 2020; but closed it around June 2020 and opened a MMA Savings in June 2020. I was trying to reflect those actions; my apologies. So I will not place any fund accounts in Fund 02 as restricted since the account is separate. I will keep the Funds in 01 as restricted as the contributions come in to the Main Account from donors. Thanks this has really helped.

[RISAAC]

This is done by entering a transaction in Accounting > Fund Accounting > Enter Transactions.

To add a beginning balance to a new bank account in a new fund would look something like the following:

02-1120-000 Checking (Debit) $500
02-3110-000 Unrestricted Equity (Credit) $500

If you are tracking the equity (AKA fund balance, net assets) in separate, restricted accounts in each fund, then you would instead choose the appropriate equity account in that fund.

Hi, I tried this and I am getting cannot save because fund accounts are group accounts. Any idea why it's not working?

[NeilZ]

This is done by entering a transaction in Accounting > Fund Accounting > Enter Transactions.

To add a beginning balance to a new bank account in a new fund would look something like the following:

02-1120-000 Checking (Debit) $500
02-3110-000 Unrestricted Equity (Credit) $500

If you are tracking the equity (AKA fund balance, net assets) in separate, restricted accounts in each fund, then you would instead choose the appropriate equity account in that fund.

Hi, I tried this and I am getting cannot save because fund accounts are group accounts. Any idea why it's not working?

Asset accounts and fund balance accounts should not be group accounts. 1120-000 is a checking account, it should not be a group account but a detail account. 3110-000, should not be a group account but a detail account.

In other words, whoever setup the system didn't use the Accounting setup wizard/module and set it up manually as the setup module would never have created those accounts as group accounts.

[RISAAC]

Hi Neil,
I used the setup wizard and accepted all the standard choices except for the accounting period. I wasn't asked to select group or detail accounts. Should I have been asked to select them?

[NeilZ]

Hi Neil,
I used the setup wizard and accepted all the standard choices except for the accounting period. I wasn't asked to select group or detail accounts. Should I have been asked to select them?

OK .. I'm going to assume you're talking about the 01 Accounting Fund, as that is what the 'wizard' defaults to setup. The system usually sets up the checking account (asset) and unrestricted net asset (fund balance) account as detail accounts. What I need to know is this

1. Are you creating a new Accounting Fund?
2. What are the account numbers you're trying to setup the initial balance for?
3. I'm assuming that this is a new checking account?

[RISAAC]

Yes, I have 5 funds (separate bank accounts) to create. I can use the standard chart of accounts like the general fund. I just didn't know how to fund accounts 2-5. I tried to do the GE as you mentioned and that's when I got the group account error.

[NeilZ]

Yes, I have 5 funds (separate bank accounts) to create. I can use the standard chart of accounts like the general fund. I just didn't know how to fund accounts 2-5. I tried to do the GE as you mentioned and that's when I got the group account error.

Again ... what are the account numbers you're trying to use? You HAVE to add the asset and fund balance accounts as detail accounts. If you're using 02-1100-000 & 02-3100-000 those are probably group accounts .. you have to ADD these accounts.

IE:
01-1110-000 & 01-3110-000 -- initially created by the accounting setup
02-1112-000 & 02-3112-000 -- must be user created
03-1113-000 & 03-3113-000 -- "" ""
04-1114-000 & 04-3114-000 -- "" ""
05-1115-000 & 05-3115-000 -- "" ""

[RISAAC]

ok, I will do this. Thank you for your help