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I set up accounting recently. Our church does not have a mortgage, but Rents a building.
Should I add a fund in Chart of Accounts under Building and Grounds or just use the default "Mortgage" to track it under. If so how do I do it?

THANKS

RC_USER wrote:I set up accounting recently. Our church does not have a mortgage, but Rents a building.
Should I add a fund in Chart of Accounts under Building and Grounds or just use the default "Mortgage" to track it under. If so how do I do it?

THANKS

I'll let others fill in the details of what account you should use, but you won't be Adding a fund you will be Adding a new account.

Since what you're paying isn't really a "Mortgage" (which would indicate a loan with the property as collateral), it should be called Building Rental or something and be an expense account since it's not being used to pay off a liability. It's just like paying for the electricity or water or whatever.

Neil is correct that this is an line item or account, not a fund.

Hope this helps.

Thanks

So by default "mortgage" is account number 1-5610-000. I'm leaving mortgage in there for future purchase.

Would it make sense to make "building rental" account 1-5620-000?

RC_USER wrote:Thanks

So by default "mortgage" is account number 1-5610-000. I'm leaving mortgage in there for future purchase.

Would it make sense to make "building rental" account 1-5620-000?

If it makes sense to you, that's fine.