Transfers Between Fund Accounts

[tena20719]

My question has to do with Transfers Between 2 Different Fund Accounts. I have set up the two following accounts:

xx-9100- Transfer To Another Fund
xx-9200- Transfer From Another Fund

I have checked the Box in the Accounting Setup Module that says we are using Transfer Funds and that the number range is 9000-9999.

The problem that I am having is that these transfers are showing up on my Income and Expense Report. I thought that if you used the transfer funds these amounts would not show up on the reports.

Can anyone shed some light on this?

Thanks!
Tena

[JohnDMeyers]

I use the same account number in both funds for each unique transfer.

For example, if I wanted to transfer $5,000 from the 03 Building Fund to the 01 General Fund, I would use:
01-9120-000 (closes-to 01-3110-000)
03-9120-000 (closes-to 03-3110-000)

Here's how this will "cancel out":
DB 01-1110-000 checking $5000
CR 01-9120-000 transfer $5000

CR 03-1110-000 checking $5000
DB 03-9120-000 transfer $5000

If I run an Income and Expense report in Fund 01, I will see the $5000 transfer coming into Fund 01.

If I run a consolidated Income and Expense report (Fund 01 - 03), the transfer amounts in 9120 cancel, and do not appear on the report.

If you use two different account numbers (i.e. 9100 and 9200), the amounts will appear on both the individual fund report and the consolidated report, but the totals will "cancel out" on the consolidated report.

Therefore, there is no right way or wrong way to setup a transfer. It depends on what information you want to appear on your reports.

[tena20719]

Hi John,

I see what you are saying about only having the one unique transfer account.

I realize if I run the combined report (Fund 01 and Fund 03) that they will cancel each other out. My question is how to get them to not show up on the individual reports (Fund 01 only).

The Power Church help says "The transfer account is outside the range of income and expense, so you don't double count the money by using a 9000 level account.". If they are outside the range of income and expense, why are they showing up on my reports?

So basically, I am trying to figure out how to not have them show up when I run the report on just Fund 01 or Fund 03.

Thanks for your help.
Tena

[JohnDMeyers]

There is no way to have it not show up on the Income and Expense statement.

Here's an example that shows why PowerChurch wants you to use the transfer account to avoid double-counting.

If you receive $10,000 in your building fund(03) and transfer $3,000 of that to the General Fund (01), and you spend $2,000 in expenses directly out of the building fund. Other than the transfer, the General Fund takes in $49,000 in income and $42,000 in expenses.

So the General Fund will show this:
Income $49,000
Transfer (in) $3,000
Expenses $42,000
Income/Expenses $10,000 (instead of $7,000 without the transfer)

The Building Fund will show this:
Income $10,000
Transfer (out) $3,000
Expenses $2,000
Income/Expenses $5,000 (instead of $8,000 without the transfer)

Consolidated will show:
Income $59,000
Expenses $44,000
Income/Expenses $15,000 (same as if no transfer takes place)

Hope that helps you see what is taking place.