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Situation: money was transferred from one accounting fund to GF before allocation was provided by the chair responsible for the accounting fund. Hence, the money was received as unrestricted net assets.

There are two mechanisms for making the transfer from 3110, either directly through the fund balance, or by using the associated income release accounts (like a reverse release). Both ways produce the same desired result. The restricted fund balance is increased, and the unrestricted net assets are reduced. Is there a best practice here?

Account Description DB CR
01-3110-000 URNA 287DB
01-3253-053 VBS FB 287CR

Or

Account Description DB CR
01-4999-000 Rest Release 287DB
01-4853-000 VBS FB 287CR

Bern
Cross Roads Presbyterian Church Monroeville

CRPC wrote:Situation: money was transferred from one accounting fund to GF before allocation was provided by the chair responsible for the accounting fund. Hence, the money was received as unrestricted net assets.

There are two mechanisms for making the transfer from 3110, either directly through the fund balance, or by using the associated income release accounts (like a reverse release). Both ways produce the same desired result. The restricted fund balance is increased, and the unrestricted net assets are reduced. Is there a best practice here?

Account Description DB CR
01-3110-000 URNA 287DB
01-3253-053 VBS FB 287CR

Or

Account Description DB CR
01-4999-000 Rest Release 287DB
01-4853-000 VBS FB 287CR

Bern
Cross Roads Presbyterian Church Monroeville

The rule of thumb is, NEVER access the fund balance accounts directly. The only time this should be necessary is if you have to make an adjustment, even then its not recommended.

Second ... it appears you're moving amounts between ACCOUNTS not accounting FUNDS. Accounting funds would be as follows:

01 - Operating
BD - Building
EF - Endowments

Each account under those would start with the FUND number (EG: 01-1110-000 Checking, and DB-1110-000 Checking). The only time you would use Transfer accounts would be to move amounts between FUNDS, not accounts. In addition, if you're using the default Powerchurch numbering scheme, that transfer would move funds into the Temporarily Restricted RELEASE account, which again, is not correct.

Now why are you moving funds? Is this to restrict funds so that VBS will have money to operate this summer?

I would REVERSE the original transaction first. Then if you're moving from General Tithes & Offerings (unrestricted) to the VBS (Restricted), I would move from INCOME to INCOME accounts.

Thus if the Tithes & Offerings income account is 01-4030-000, and the VBS Income account is 01-4253-000 the transaction would look something like this:

01-4030-000 250.00 DB
01-4253-000 250.00 CR

When posted the system will update the Fund Balance accounts.

NeilZ wrote:

CRPC wrote:Situation: money was transferred from one accounting fund to GF before allocation was provided by the chair responsible for the accounting fund. Hence, the money was received as unrestricted net assets.


Account Description DB CR
01-4999-000 Rest Release 287DB
01-4853-000 VBS FB 287CR

The rule of thumb is, NEVER access the fund balance accounts directly. The only time this should be necessary is if you have to make an adjustment, even then its not recommended.

Second ... it appears you're moving amounts between ACCOUNTS not accounting FUNDS. Accounting funds would be as follows:


Now why are you moving funds? Is this to restrict funds so that VBS will have money to operate this summer?

Starting with your second item first. which should answer the two why questions, as well as answering why your solution after those two questions is not relevant to my specific question, though it is a good primer for someone with a similar problem that may more closely reflect your recommendations.

My original first sentence provides the backdrop regarding why the money is in the unrestricted net assets. Money was transferred inter-fund BEFORE the question I raise. This is a small portion of a larger transfer that came to the General Fund from A DIFFERENT Fund.

CRPC wrote:Situation: money was transferred from one accounting fund to GF before allocation was provided by the chair responsible for the accounting fund. Hence, the money was received as unrestricted net assets.

The income wasn't GF income. It was a income to a different fund. The money pre-backdrop resided in 04-3110 and did come in properly through 04-4240. Properly recorded income for the proper fund. Changing the income would be incorrect.

01-1110 250DB
04-4240 250DB
04-1110 250CR
01-4253 250CR

This changes the income and is not the answer. I suppose duplicating the temporarily restricted set (32xx, 42xx, 48xx) in the 04 accounting fund is a possibility, but replicating the sets that 04 may contribute to is unwieldy. Addressing that is a whole different thread though.

It was a transfer. Recording it as income, transfer, AND income, would also not be correct, besides it would require touching net assets directly.

04-1110 250DB
04-4240 250CR
04-9201 250DB
01-9504 250CR
01-3110 250DB
01-4235 250CR

The money properly started in 3110 (unrestricted net assets) due to the transfer. It needed to end up in 3253 (VBS temp. restricted). Ultimately, we decided on the following, based on our agreement that fund balances are to be as close to sacrosanct as possible. It may not be ideal, and may not be suited long term, but it is where we are at today.

01-4999 250DB
01-4853 250CR

For further philosophical addressing of this, we will end up with a copy of the fund accounting for churches book you recommended in a different thread.

B

Still thinking about this, and thought about this .. you need to add funds to the asset account, as well as the restricted assets account

01-1110-000 CR 1000 - Checking
01-9100-000 DB 1000 - Transfer to other funds
04-1110-000 DB 1000 - Checking
04-9200-000 CR 1000 - Transfer from other accounts

This is to insure that the transfer has an audit trail and is shown on the I&E report.

I'm assuming that the temp restricted account has its own fund balance (3000 series) account

Within the 04 fund:

01-3110-000 DB 1000 - Unrestricted Net Assets
01-3234-000 CR 1000 - Temp Restricted VBS Net Assets

This may be one of the few areas where you need to access the net assets account directly.

My usual disclaimer: I am not an accounting, my advice is based on knowledge picked up during my 16+ years of using the program, and detailed searches of previous answers.

I also advise that before you try any transactions, do a backup of the accounting files using the PCPlus backup utility so that you can revert back if the transaction doesn't create the desired result.