Temp. Restrict balance incorrect

fstuart · Post by **fstuart** » Mon Dec 25, 2006 8:14 pm

12/24/06 Contributions were collected and posted as follows:

10-1110 Main Checking Account DEBIT: $13,765.58
10-4030 Tithes and Offerings CREDIT: $3,765.58
10-4240 Temp. Restricted Account CREDIT: $10,000.00

When I run the balance sheet report, the 10-4240 shows a balance of $193.00 (which was accurate until this 12/24/06 contribution).

Why doesn't this 10-4240 Temp. Restricted account show a balance of $10,193.00 after the $10,000 was credited today?

Thank you!!

Forrest Stuart

Post by **Zorak** » Tue Dec 26, 2006 8:51 am

Take a look at the Changes In Equity (or Accounting Fund Balances) report for December and see if that gives any insight.

fstuart · Post by **fstuart** » Tue Dec 26, 2006 10:56 am

The Changes in Equity report show Beginning and Ending Balances for the 10-3240-104 of $193.00.

Am I missing something between the 10-3240 and the 10-4240 accounts?

Post by **Zorak** » Tue Dec 26, 2006 3:35 pm

I would first suggest looking at the posted Fund Accounting transaction, making sure the $10,000 posted to the right income account.

Secondly, I would check an Account Activity report, to make sure some transaction didn't Debit the $10,000 back out of the 4240 income account. If that happened, you would show $0 change for the month.

The last option points to an incorrect "Close To" account assigned to the 10-4240-104 account. Take a look in Maintain Chart of Accounts -> Details for 4240-104 in fund 10 and make sure it is closing to 10-3240.

fstuart · Post by **fstuart** » Tue Dec 26, 2006 8:31 pm

I would first suggest looking at the posted Fund Accounting transaction, making sure the $10,000 posted to the right income account.

The credit posting was made to 4240 account, which is the income account for this Temporary Restriction. The credit shouldn't be to the equity account (3240), should it?

Secondly, I would check an Account Activity report, to make sure some transaction didn't Debit the $10,000 back out of the 4240 income account. If that happened, you would show $0 change for the month.

This account looks fine.

The last option points to an incorrect "Close To" account assigned to the 10-4240-104 account. Take a look in Maintain Chart of Accounts -> Details for 4240-104 in fund 10 and make sure it is closing to 10-3240.

I thought all accounts close to the unrestricted net assets account. Do I have that wrong?

Post by **Zorak** » Wed Dec 27, 2006 8:46 am

fstuart wrote:I thought all accounts close to the unrestricted net assets account. Do I have that wrong?

There's the problem.

Restricted income and release close to the restricted equity 3240.
Released from restrictions 4999 and the expense close to unrestricted equity.

fstuart · Post by **fstuart** » Wed Dec 27, 2006 5:28 pm

I changed the 10-4240 account to close to 10-3240. That now appears correct in the Balance Sheet reports.

Please confirm this for me:

The temp. restricted release accounts, which are numbered with the 48xx series, closes to unrestricted net assets, which is the 3110.

The released from restriction account, numbered 4999, closes to net assets, which is 3110, as well.

The income that is designated as a temp restricted account close to the temp restricted equity accounts, numbered 32xx.

Post by **Zorak** » Thu Dec 28, 2006 9:09 am

fstuart wrote:The temp. restricted release accounts, which are numbered with the 48xx series, closes to unrestricted net assets, which is the 3110.

Everything else is right except this line. Release accounts need to close to the Restricted Equity. That is how funds are "released" from the restriction, by reporting negative income to this 48XX release account, which closes to the restricted equity, therefore lowering the balance of the restricted equity account.

As I suggested to someone else in an earlier post, it would be a good idea for you to go through the Maintain List of Donor Restrictions screen in Fund Accounting and define the different restrictions that you have in place. This will walk you through an assistant that will take care of the close to account assignments and also will inform PowerChurch Plus about the different restrictions you are tracking.

When you are writing a check in Accounts Payable (or Enter Transactions in Fund Accounting) to spend restricted money, you will see there is a "Release Funds From Restriction" button. This quickly and easily adds the release portion of the transaction for you. This functionality is not available if you have set up the donor restriction yourself and not gone through the Add Donor Restriction assistant.