User Support Forum

I have two funds in Powerchurch 01 for budgeted expense & 02 for designated gifts
both funds have invoices that contain sales tax that I will reclaim. Previous treasurer did not have the sales tax
account active (in use). When I ran my January report, Fund 01 is overstated by $3.49 and Fund 02 is understated by $3.49
$3.49 is the amount of sales tax that belongs in fund 02 but is showing in the asset of fund 01

I have an asset account 01-1110-000 to which all sales tax is added each time I enter an invoice and enter the sales tax amount in the pop up box. However, I need to have an account for fund 02 for sales tax as well, but when I check in PC, I can't tell if I can change the
G/L from the one in fund 01 to the G/L for fund 02

Is this something that will require a monthly journal entry to move 02 sales tax from fund 01? OR how can I insert the G/L for fund 02 when entering an invoice with sales tax that will be reclaimed from the state of North Carolina?

Marie Lowdermilk
Treasurer

LowdermilkM wrote:I have two funds in Powerchurch 01 for budgeted expense & 02 for designated gifts
both funds have invoices that contain sales tax that I will reclaim. Previous treasurer did not have the sales tax
account active (in use). When I ran my January report, Fund 01 is overstated by $3.49 and Fund 02 is understated by $3.49
$3.49 is the amount of sales tax that belongs in fund 02 but is showing in the asset of fund 01

I have an asset account 01-1110-000 to which all sales tax is added each time I enter an invoice and enter the sales tax amount in the pop up box. However, I need to have an account for fund 02 for sales tax as well, but when I check in PC, I can't tell if I can change the
G/L from the one in fund 01 to the G/L for fund 02

Is this something that will require a monthly journal entry to move 02 sales tax from fund 01? OR how can I insert the G/L for fund 02 when entering an invoice with sales tax that will be reclaimed from the state of North Carolina?

Marie Lowdermilk
Treasurer

I take it that you're putting the reclaimed tax back in the checking account, right ?? 1110 is the default number for the checking account.

FWIW ... Powerchurch is setup to send that information to an account number. Based on the tests I've run, if you have a vendor setup to use the 01 checking account in the vendor record, when the tax box appears, it will use the 01 asset account. It doesn't matter what you have the expense account setup for, it will use the FUND for the checking account. If you don't have a Credit Account selected on the vendor record, the system will always default to the 01-1110 (default checking) account, thus also default to that account for the reclaimed tax amount.

What you'll have to do is either setup the vendors that you use for the 02 fund with the 02-1110 credit account, or before you save the invoice, change the reclaimed tax line on the invoice to 02-1110.

No need to do anything else, just remember to do this.



As I have no idea how you reclaim your taxes I'm going to suggest something based on the "assumption" that you get a check back from the state. If that is not the case, well ignore everything that follows

1. if the 1110 is indeed your checking account, create another asset account to show your reclaimed taxes. Make sure its available in fund 01 & 02 - for example 1910-000. You may want to check the box that will include the account in the Cash Management report. Makes it easier to see how much is in each fund's reclaimed taxes .
2. Update the File -> Preferences -> Accounting Accounts Payable tab to show the new account for the taxes, change from 1110 to 1910.
3. Remember to use the correct 1910 account when you're creating invoices.
4. When you get the account, create an Funds Accounting Transaction that
Debits the 01-1110-000 account for the amount of money in the 01 fund's reclaimed taxes (check using the Cash Mgt report)
Credits the 01-1910-000 account the same amount
do the same for the 02 accounts.

The funds will then move to the checking account properly, and your checking account balance will now show actual amounts rather than an amount plus what the state has to return.

Wow ! I'm impressed - I typically confuse people with my questions.....but your answer is exactly what I was looking for.....
plus some. I will indeed receive a check for the reclaimed taxes. While I thought that I had the process correct, your answer caught that the reclaimed tax showed on the reports as part of the checking account balance. I had not considered this! Great catch which will prevent me from being stuck in a meeting trying to explain the balance!
Thanks so much for taking the time to share your knowledge. I'm starting my second year with PowerChurch and I'm changing things to make it do more of the 'work' It's been a challenge but this was my only sticking point .... here's to my next 10 years!

LowdermilkM wrote:Wow ! I'm impressed - I typically confuse people with my questions.....but your answer is exactly what I was looking for.....
plus some. I will indeed receive a check for the reclaimed taxes. While I thought that I had the process correct, your answer caught that the reclaimed tax showed on the reports as part of the checking account balance. I had not considered this! Great catch which will prevent me from being stuck in a meeting trying to explain the balance!
Thanks so much for taking the time to share your knowledge. I'm starting my second year with PowerChurch and I'm changing things to make it do more of the 'work' It's been a challenge but this was my only sticking point .... here's to my next 10 years!

The more you use the program, the more you can see where it can do more for you.