User Support Forum

I am using Powerchurch v9.0 and need help understanding how to use temporarily restricted accounts. I understand basic accounting however, fund accounting is new to me.

I am setting up Powerchurch for the first time starting at Jan 1. I entered the different accounts that had balances at 12/31/04 as Temporarily Restricted accounts which created the equity accounts. The Income accounts (4200 and 4800 series) are also set up. I run a Balance Sheet and all accounts have correct figures.

Here is the problem that I do not understand using the Benevolence account as an example.

I am entering a $40.00 manual check to release temp restricted funds from Benevolence. When I release the funds from the manual check screen, the following lines are entered automatically...
01-4852-113 Benevolence $40.00 debit
01-4999-000 Released from restriction $40.00 credit
I enter my checking account as a credit and it tells me that the transaction is not in balance. I do not know which account to debit. This is not an expense, I am only taking it out of restricted funds.

Please help me understand this. I have been reading the book, looking at other posts in this forum and cannot make heads or tales of it.

Whenever you pay cash from a restricted account you will always have two sets of accounting entries. The first will be to release the amount from restriction. That is the entry you show where you:

01-4852-113 Benevolence $40.00 debit
01-4999-000 Released from restriction $40.00 credit

The second will be to record the actual expense. That entry will look something like this:

01-5XXX-000 Benevolence Expense debit
01-1110-000 Checking account credit