LizAA wrote:Yes, there were three funds set up: the Equity (3210), Income (4210) and Release (4810) funds. (Both 4210 and 4810 close out to 3210 and both say 'income' in the maintain chart of accounts)
I will have to check but I don't recall seeing the option to 'release restricted funds' button when creating an invoice, even though the screenshot in the manual says there should be one... I'll check again when next I am in PCh. Does the 'release restricted funds' button only display under certain circumstances?
I'll check the manual again and work through a transaction to see what happens.
That button is there all the time. I believe its there even if you don't have any Donor Restrictions setup, if you click it, you'd get an message about no restrictions setup.
FWIW .. I may have missed it somewhere, what version of Powerchurch are you using?
The transaction was: We bought a fridge from Lowes for the church kitchen. The amounts is to be taken out of the Facilities fund which is a restricted fund. I created an invoice with the vendor being Lowes. The credit account is our checking account, the debit account I entered (manually typed) to be the 01-4210 account but I think it should have been 01-4810. ... Then I processed the computer generated check.
When I did the activity report for the Facilities Fund, I get the 3210 balance correct, but the 4210 fund has contributions AND the check with a -ve amt; and the 4810 fund has no transactions.
Yeah .. because the 4210-00 is in the default range for a Temporary Restricted Income account, and 4810 is the release account.
HOWEVER that is not the way you create an invoice, then release restricted funds.
A proper invoice would look something like this:
Note ... you have the checking account (1110-000) being Credited, the expense account (5525-000) being Debited, the two other accounts are added when you click the
Use Restricted Funds button, and select the proper Restricted Fund.
So the 01-4814-000 account is the Temporary Restricted Release account, yes its under the INCOME numeric series, its not the main INCOME account however, that's the 4214-000 account which is NOT touched. This 4814 account is DEBITed, and the 01-4999-000 is credited. The 4999-000 account is the default
Release from Restriction account which closes to the 01-3110-000 account which is the main
Unrestricted Net Assets Fund Balance (Equity) account for the Accounting Fund. The 01-4814-000 account closes to the Fund Balance account (01-3214-000) for the restricted fund.
I had a hard time figuring out what this all did until I realized the logic behind it.
1. 1110-000 - checking account .. used to pay for items - a CR entry (which actually subtracts from the account) - decreases the bank balance (a DB entry to this account ADDs funds) -
2. 5525-000 - expense account .. used to show an expense - a DB entry (which adds to the account) - increases the expenses to the church - which you want to show as you need to know how much the church is spending. Normally closes to the 3110-000 Unrestricted Net Assets fund balance account.
3. 4814-000 - temp release account .. DB entry (which subtracts from the account) this actually creates a NEGATIVE entry in the account, which because it
closes to the Restricted Fund's fund balance account REDUCES the amount left in the fund balance.
4. 4999-000 - released from restriction account .. a CR entry (which creates a POSITIVE entry in the account) which closes to the main 3110-000 Unrestricted Net Assets fund balance account.
Once you post, and you run an Income & Expense report, you'll see something like this:
Which you'll see cancel out.
Does this help?
