Releasing Restricted Funds

[RGWalk]

For "Donor Temporarily Restricted" funds, we have income, release, and equity accounts set up such that the income and release close to the equity account. When income is contributed, the equity account increases accordingly. However, when releasing money from its restriction, the equity account does not decrease. We are using the 'release restricted funds" function on the transaction entry screen (in accounts payable), and the transaction appears to debit and credit properly, similar to the choir robe example in the "help" files. The balance sheet, however, does not reflect the transaction.
I understand that I need to check the box to "include unposted transactions" when running the report, and I make sure that is done, so that is not the problem.
We have checked to be sure that the accounts close to the correct places, i.e. the expense account closes to 3110-000 Unrestricted Net Assets.

[NeilZ]

For "Donor Temporarily Restricted" funds, we have income, release, and equity accounts set up such that the income and release close to the equity account. When income is contributed, the equity account increases accordingly. However, when releasing money from its restriction, the equity account does not decrease. We are using the 'release restricted funds" function on the transaction entry screen (in accounts payable), and the transaction appears to debit and credit properly, similar to the choir robe example in the "help" files. The balance sheet, however, does not reflect the transaction.
I understand that I need to check the box to "include unposted transactions" when running the report, and I make sure that is done, so that is not the problem.
We have checked to be sure that the accounts close to the correct places, i.e. the expense account closes to 3110-000 Unrestricted Net Assets.

FWIW ... the release account should not close to the equity account, it should have its own equity account to close to. Step 2 in the Restricted Account setup wizard gives you the choice to use an existing account, however, it should not be the same account where you're tracking the income. It does state on that Step 2 page that you should have a separate equity account for each restriction.

I believe the fact that you're using the same equity account to track the income and the release is causing what you see.

[Jeff]

There are 2 accounts used in the release process. The release account that is specific to the donor restriction should close to the donor restricted equity account. The "Release from Restrictions" (4999 in the default chart of accounts) should close the unresticted equity account.

[NeilZ]

There are 2 accounts used in the release process. The release account that is specific to the donor restriction should close to the donor restricted equity account. The "Release from Restrictions" (4999 in the default chart of accounts) should close the unresticted equity account.

Jeff,

isn't that link for the 4999 account automatically done ??

[Jeff]

It is, but it if it got changed somehow, it might cause the problem of money not releasing.

[NeilZ]

It is, but it if it got changed somehow, it might cause the problem of money not releasing.

Gotcha !!

[RGWalk]

Thanks, to both Neil and Jeff. I will investigate to see if this is the answer.

[RGWalk]

Upon further investigation, I do not think that is the answer. I do have the donor restriction account closing to its own equity :

I.E. 4224-109 closes to 3224-109

And then, I do have the release from restriction closing to the unrestricted equity:

I.E. 4990 closes to 3110

I still have the problem, though.

[Jeff]

The detail changes in equity report also has the option to include unposted transactions. When you run that report does it show the changes you expect?

[Zaina]

Is the transaction still in Accounts Payable or has it been Posted to Paid Items and Fund Accounting? If it is still sitting in Accounts Payable, checking the include unposted transactions won't show it in the Fund Accounting reports.

[Jeff]

I didn't think about that. That is a good catch.

[RGWalk]

Yes, I make sure to check the box for including unposted transactions, and I still have the same problem.
It is making no sense.

[NeilZ]

Yes, I make sure to check the box for including unposted transactions, and I still have the same problem.
It is making no sense.

Did you catch Zaina's comment. If you've still got transactions in AP and you've not Posted to Paid Items and Fund Accounting they won't show up in any reports in FA.