Unrestricted vs restricted accts

[Greghc48]

Still working on initial set up.

We have 3 checking accts. General checking for operating expenses, a designated checking acct for 8 areas for temporarily restricted funds, and a building checking acct for several other temp restricted projects / procurements.

Should the accounting module be set with with 3 individual "funds", or can everything be grouped into one fund and combined chart of accounts noting unrestricted / restricted, etc?? Have tried both ways -- still confused about how to proceed..

[NeilZ]

Still working on initial set up.

We have 3 checking accts. General checking for operating expenses, a designated checking acct for 8 areas for temporarily restricted funds, and a building checking acct for several other temp restricted projects / procurements.

Should the accounting module be set with with 3 individual "funds", or can everything be grouped into one fund and combined chart of accounts noting unrestricted / restricted, etc?? Have tried both ways -- still confused about how to proceed..

You can have all three checking accounts listed under the one operating fund, you can have separate Accounting funds for each area using the separate checking (asset) accounts, or you can do as we did, get rid of all the extraneous checking accounts, and let the system take care of the accounting for the different restrictions. What this did was eliminate all the extra checkbooks, all the extra accounting requirements and reconciliations, simplify the writing of checks, and make it easier to enter and deposit contributions.

We have three separate accounting funds, one for operations, one for building, and one for deacons, but one checking account. Checks are written from each fund, but they all come out of one bank account. The system keeps track of the income and expense in each fund, but at the end of the month, only one account needs to be reconciled.

[Greghc48]

I completed my initial set up using 3 separate checking accounts for General, Designated, and building expenses. Desugnated and building are temp restricted funds.

I wanted to mirror our existing structure for my parallel system trial between Powerchurch and current tools.

After jan 1, i plan to use Powerchurch for all financial needs, and hopefully combine all into one checking account as you suggested. How do I change PC to do that?

Assume just change checking account asset links to "general checking" from the desig and building asset accts?? Othrr changes needed?

[NeilZ]

I completed my initial set up using 3 separate checking accounts for General, Designated, and building expenses. Desugnated and building are temp restricted funds.

I wanted to mirror our existing structure for my parallel system trial between Powerchurch and current tools.

After jan 1, i plan to use Powerchurch for all financial needs, and hopefully combine all into one checking account as you suggested. How do I change PC to do that?

Assume just change checking account asset links to "general checking" from the desig and building asset accts?? Othrr changes needed?

Well, you would have to transfer all the funds from the existing checking accounts to the single checking account using Transfer Accounts. Then make the Operations checking account active across all the funds. I'm going to assume its using the account number 01-1110, and the other accounts 02-1120 and 03-1130. You would activate 02-1110 & 03-1110. You'd then inactivate 02-1120 & 03-1130

I'm thinking that you'd also have to change any Contribution Fund setups that point to the old checking accounts to reflect the proper checking -1110- account number for each fund.

[Greghc48]

Another point on my question about combining all into one checking account. I looked at my chart of accts closer. In my set up, I actually included my designated and building fund (with temp restrictions) under "General Fund 01". I may have accidentally set my chart up to reflect what I want to do down the road for getting everything into one checking account.

Currently, My checking accounts are numbered 01-1110, 01-1120, and 01-1130 respectively for General, Designated, and Building funds.

It looks as if I transferred Designated and Building checking funds into general checking, and made sure my contribution funds tie to the combined "general" checking account -- would that do it? (Also showing 01-1120 and 01-1130 as inactive)...?

Greg

[NeilZ]

Another point on my question about combining all into one checking account. I looked at my chart of accts closer. In my set up, I actually included my designated and building fund (with temp restrictions) under "General Fund 01". I may have accidentally set my chart up to reflect what I want to do down the road for getting everything into one checking account.

Currently, My checking accounts are numbered 01-1110, 01-1120, and 01-1130 respectively for General, Designated, and Building funds.

It looks as if I transferred Designated and Building checking funds into general checking, and made sure my contribution funds tie to the combined "general" checking account -- would that do it? (Also showing 01-1120 and 01-1130 as inactive)...?

Greg

Well ... if you entered those accounts with opening balances, it is easier, however, the problem with that is then you don't have the programmatic separation between the funds. The system would maintain the individual 'fund balance' in the checking account for each fund.

You need to show the current checking accounts in the correct funds. Say operating is 01, then building is 02, with 1120 the current building checking account.

You need to have 02-1110 setup, and 02-1120 currently being used. Then when you're ready to close the separate building checking, you will then move the funds to 02-1110 from 02-1120 through a debit/credit transation.

The reason for this is when you pay bills or any other expenses out of the building fund, you want those expenses and the deduction from the checking account showing up in the proper Income/Expense report.

Do you see what I'm getting at?? Its 11:40 pm EDT and I'm getting a bit fuzzy

[NeilZ]

I realized I also forgot this:

that when you get contributions toward the building fund, you want those showing up under the proper Building Fund income account, as well as the building fund balance in the checking account, which means in Contributions you would need to have any Contribution Fund pointing to an 02-4xxx- Income account, and the 02-1110- checking.

[Greghc48]

I've gone through a month's worth of transactions for August, and planned to continue my trial through the end of the year, learning the tool and matching financials / payroll with my current approach.

By Jan 1, I'll have several months of data in place..

How much trouble would I have if I decided to do the checking account conversion and Fund 02, 03 set up then? Would I have to restart contribution, accounting modules and lose data?

Just wondering about data impacts..

[NeilZ]

I've gone through a month's worth of transactions for August, and planned to continue my trial through the end of the year, learning the tool and matching financials / payroll with my current approach.

By Jan 1, I'll have several months of data in place..

How much trouble would I have if I decided to do the checking account conversion and Fund 02, 03 set up then? Would I have to restart contribution, accounting modules and lose data?

Just wondering about data impacts..

If you have the system setup with the funds as noted, with each using its current designated checking accounts, and contributions setup to debit/credit the individual funds checking/income accounts. Then when it comes time to switch to one single checking account, all you would need to do is make sure that:

1. You properly move the funds to the single checking account. I would do this after you reconcile the individual checking accounts to be sure all issued checks have cleared the old accounts. If there are still checks outstanding in the two accounts you want to close, I'd make sure there was enough left in those accounts to cover those checks.

2. You change all references in Contributions and Accounts Payable vendors to reflect the single checking account in each fund. That is in account 02, you would change references from 02-1120 to 02-1110.

No data will be lost as you're just doing funds moves, all the previous transactions have been posted. The only thing is that you will need to reconcile all checking accounts separately until you consolidate. After that, you will need to do a final reconcile of the two accounts you're closing to make sure that all checks & deposits have been accounted for. That will probably include the final check from the old accounts to deposit in the consolidated checking account.

Does that make sense ?

[Greghc48]

Neil,

Yes - your thoughts make sense. Sounds like a good thorough scrub of the chart of accounts would make sense - mapping out the "from" and "to" changes necessary, then proceed with a checklist for changes needed and for verification.

During my trial period between now and Dec, my guess is that i could make the PC changes now (after august posting), and just operate as if we only had one checking account (albeit with weird number pattern for check numbers), and prove it in. Once we see that it works and flesh out bugs, then do the checking account balance transfers on 12/31 to set up the beginning 2016 balances (taking into account open check or deposits as you said). Another thought too would for us to leave dec open for any mail in contributions postmarked in time for 2015 credit... Will ponder and start looking at chart changes needed and the timing of all this.. Thx so much - again!

[NeilZ]

Neil,
Another thought too would for us to leave dec open for any mail in contributions postmarked in time for 2015 credit...

One of the biggest pieces of advice we give people here about Funds Accounting is that Powerchurch can be setup to have 18 months open at a time. Our advice is use all 18, only close a month when it comes time to open one.

For instance, I have months open from March 2014 through August 2015. I will close March when it comes time to open September.

What this does is give you the flexibility to make adjustments to previous months, and even the previous year. This does happen ..
Take a look at this sticky thread to see why we so advise:

viewtopic.php?f=3&t=11388

[Greghc48]

Thanks Neil, good advice. To kinda summarize this thread...

Sounds like in my case, for adding funds 02 and 03 at a later date by transferring $ appropriately at the end of a month, then linking contributions and accts payable to new "funds", i can do all that without closing months off..

That would allow me to consolidate funds 01, 02, and 03 into one checking account, still preserve the restrictions of designated and building funds - and then just run reports either consolidated or by fund..

Just have to make sure chart of accts is set up based on above...

Thanks again - you have been immensely helpful to me!!

[Greghc48]

Neil,

Another question for you on combining my individual Fund 01, 02, and 03 checking accounts into one checking account as we discussed some time back - per above discussions.

My current configuration is as follows:

Fund 01 General Checking = 01-1110-000
Fund 02 Designated Checking = 02-1120-000
Fund 03 Building Checking = 03-1130-000

I understand your recommendation to move bank funds, and then move powerchurch funds 02 and 03 in the activated accounts per the following:

Move 02-1120-000 $ into 02-1110-000
Move 03-1130-000 $ into 03-1110-000

My question is how do I set up the new account numbers (02-1110-000, and 03-1110-000) in powerchurch? The system tells me that that number is in use (1110-000)? I'm ok with the changes required in contribution funds and accounts payable.

Thanks again in advance for your help.

Greg

[NeilZ]

I understand your recommendation to move bank funds, and then move powerchurch funds 02 and 03 in the activated accounts per the following:

Move 02-1120-000 $ into 02-1110-000
Move 03-1130-000 $ into 03-1110-000

My question is how do I set up the new account numbers (02-1110-000, and 03-1110-000) in powerchurch? The system tells me that that number is in use (1110-000)? I'm ok with the changes required in contribution funds and accounts payable.

Thanks again in advance for your help.

Greg

Once you're in Maintain Chart of Accounts, find the account 1110, then click on the button that says add account to fund, you'll get a list of all the funds. Just select the ones you want to add the account to. Its that simple.

[Greghc48]

Neil,

Your instructions worked like a charm. Completed all the PowerChurch changes as you mentioned, and transferred other checking acct $ into the main checking account today. All set up for one checking account to support three funds. Continuing my trial work until we go live 100% with PowerChurch on Jan 1.

Thx for all the help.

Greg