Restricted funds being used for Payroll

[NeilZ]

Here's the issue:

The church sold the manse, and put the money into an investment account. There is currently a monthly distribution of interest/dividends that is placed in a restricted account. These funds are to be used to help pay the housing allowance for the new minister.

I may have missed something, but there is no location to show the release of restricted funds in Payroll. So....

I created the check in payroll, and then Post Payroll to update Payroll & Funds Accounting. I then access the unposted check transaction in Funds Accounting, and add a restricted funds release to that transaction.

When that transaction is posted, it will show the expense under Housing Allowance, and also show the restricted funds release to cover that expense amount.

Is this a correct way of doing it?

Thanks in advance!!

[Zorak]

Since the release will be using two income accounts, I don't think any of the available types of Item Descriptions in Payroll will work. You can either manually adjust the unposted Fund Accounting transaction, or maybe set up a repeating item in Accounts Payable to process on the same schedule as Payroll.

Of course, it won't be an actual Accounts Payable transaction, it would be a "manual check" that processes the two lines of the release account. That would require setting up a vendor and if the amount changes each check, you would have to modify the repeating transaction that is released each month.

[NeilZ]

That's what I figured. It appears that my modification of the unposted transaction is probably the easiest to do.