User Support Forum

Hi,
We just installed PowerChurch and I have a question in regards to issuing starting balances on Accounting Funds. When I set up PowerChurch I set up our General Fund. I created all of our income and expense accounts associated with this fund. Once the setup was completed, I setup our Missions Fund and used the Maintain Donor Restrictions to setup the income, release, and equity account for that. I then went in and added expense accounts for each missionary we support. Given this, how I do move the starting balance to this fund? What I did was issue a transaction from the Unrestricted Net Assets in Fund 01 (General Fund) and moved it to the Missions Fund Equity Account inside the Missions Fund. It show's the balance on the Balance Sheet report, I just wanted to make sure this is the correct way. I did not see this addressed in the manual, but I may have overlooked this. To add to this, I am assuming when I issued a payment to one of our missionaries, I have to hit the Release Restricted Funds button on the Accounts Payable screen, correct?

ngaham wrote:Hi,
We just installed PowerChurch and I have a question in regards to issuing starting balances on Accounting Funds. When I set up PowerChurch I set up our General Fund. I created all of our income and expense accounts associated with this fund. Once the setup was completed, I setup our Missions Fund and used the Maintain Donor Restrictions to setup the income, release, and equity account for that. I then went in and added expense accounts for each missionary we support. Given this, how I do move the starting balance to this fund? What I did was issue a transaction from the Unrestricted Net Assets in Fund 01 (General Fund) and moved it to the Missions Fund Equity Account inside the Missions Fund. It show's the balance on the Balance Sheet report, I just wanted to make sure this is the correct way. I did not see this addressed in the manual, but I may have overlooked this. To add to this, I am assuming when I issued a payment to one of our missionaries, I have to hit the Release Restricted Funds button on the Accounts Payable screen, correct?

This looks like an issue much like one in another thread this is basically what I wrote there, with adjustments for your situation.

I would REVERSE all transactions done so far. In this example, I'm using 04 to reflect your mission fund.

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 the system automatically updates the Unrestricted Net Assets (Equity)

Now you need to move the funds to restrictions under the Temp Restricted Net Assets account

Within the 04 fund:

04-3110-000 DB 1000 - Unrestricted Net Assets
04-3234-000 CR 1000 - Temp Restricted Net Assets

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

You would then write checks against the 04-1110-000 checking using a 5000- series expense account (ex 04-5300-000), then using the Release Restricted Funds button, enter the amount being released, and the system will then create the final transactions needed for the release and system updates.

The release transactions will then cause the system to move the funds from restricted net assets, to unrestricted to pay for the expense.

Does this help??


My usual disclaimer: I am not an accountant, 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.

NeilZ wrote:

ngaham wrote:Hi,
We just installed PowerChurch and I have a question in regards to issuing starting balances on Accounting Funds. When I set up PowerChurch I set up our General Fund. I created all of our income and expense accounts associated with this fund. Once the setup was completed, I setup our Missions Fund and used the Maintain Donor Restrictions to setup the income, release, and equity account for that. I then went in and added expense accounts for each missionary we support. Given this, how I do move the starting balance to this fund? What I did was issue a transaction from the Unrestricted Net Assets in Fund 01 (General Fund) and moved it to the Missions Fund Equity Account inside the Missions Fund. It show's the balance on the Balance Sheet report, I just wanted to make sure this is the correct way. I did not see this addressed in the manual, but I may have overlooked this. To add to this, I am assuming when I issued a payment to one of our missionaries, I have to hit the Release Restricted Funds button on the Accounts Payable screen, correct?

This looks like an issue much like one in another thread this is basically what I wrote there, with adjustments for your situation.

I would REVERSE all transactions done so far. In this example, I'm using 04 to reflect your mission fund.

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 the system automatically updates the Unrestricted Net Assets (Equity)

Now you need to move the funds to restrictions under the Temp Restricted Net Assets account

Within the 04 fund:

04-3110-000 DB 1000 - Unrestricted Net Assets
04-3234-000 CR 1000 - Temp Restricted Net Assets

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

You would then write checks against the 04-1110-000 checking using a 5000- series expense account (ex 04-5300-000), then using the Release Restricted Funds button, enter the amount being released, and the system will then create the final transactions needed for the release and system updates.

The release transactions will then cause the system to move the funds from restricted net assets, to unrestricted to pay for the expense.

Does this help??


My usual disclaimer: I am not an accountant, 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.

I think I get this. So, im basically transferring the funds to the proper accounting funds unrestricted net assets (through the transfer account), then move it from the unrestricted net assets account to the restricted asset or equity account. In the case of our Missions Fund, I have a Missions Fund Equity account. In that example, I'd credit that account the balance of the fund and debit the Unrestriced Assets in the Missions Fund.

ngaham wrote: I think I get this. So, im basically transferring the funds to the proper accounting funds unrestricted net assets (through the transfer account), then move it from the unrestricted net assets account to the restricted asset or equity account. In the case of our Missions Fund, I have a Missions Fund Equity account. In that example, I'd credit that account the balance of the fund and debit the Unrestriced Assets in the Missions Fund.

Basically true, but since you're actually keeping your funds in a separate fund account, you're effectively restricting them from all other funds, so you may not need a Temp Restricted Account (Donor Restriction) at all.

Do you see what I'm saying?? The I&E report for the fund will show the monthly & yearly income and expenses, and the Accounting Fund Balance report will show all the funds in that account, including any remaining from a prior year.

NeilZ wrote:

ngaham wrote: I think I get this. So, im basically transferring the funds to the proper accounting funds unrestricted net assets (through the transfer account), then move it from the unrestricted net assets account to the restricted asset or equity account. In the case of our Missions Fund, I have a Missions Fund Equity account. In that example, I'd credit that account the balance of the fund and debit the Unrestriced Assets in the Missions Fund.

Basically true, but since you're actually keeping your funds in a separate fund account, you're effectively restricting them from all other funds, so you may not need a Temp Restricted Account (Donor Restriction) at all.

Do you see what I'm saying?? The I&E report for the fund will show the monthly & yearly income and expenses, and the Accounting Fund Balance report will show all the funds in that account, including any remaining from a prior year.

So you're saying don't use a specific equity account for fund, just use the unrestricted net assets account?

ngaham wrote:

NeilZ wrote:

ngaham wrote: I think I get this. So, im basically transferring the funds to the proper accounting funds unrestricted net assets (through the transfer account), then move it from the unrestricted net assets account to the restricted asset or equity account. In the case of our Missions Fund, I have a Missions Fund Equity account. In that example, I'd credit that account the balance of the fund and debit the Unrestriced Assets in the Missions Fund.

Basically true, but since you're actually keeping your funds in a separate fund account, you're effectively restricting them from all other funds, so you may not need a Temp Restricted Account (Donor Restriction) at all.

Do you see what I'm saying?? The I&E report for the fund will show the monthly & yearly income and expenses, and the Accounting Fund Balance report will show all the funds in that account, including any remaining from a prior year.

So you're saying don't use a specific equity account for fund, just use the unrestricted net assets account?

Since you're keeping these funds in a separate Accounting Fund anyway, and I'm assuming that all the mission funds are used for mission giving (there's no specific giving toward a mission project) there may be no need to create a Temporary Restriction.

If you have a specific area that is donated to, and the funds should be segregated from regular mission funds, that's when you create the Donor Restriction.

I understand. I got everything setup last night and ran my first AP for our missionary support. Everything went smoothly. Thank you very much for your help Neil!

Another quick question on this. If the fund is starting out with a negative balance, would you then just do this transaction backwards? For example, if a fund is -4794.15.

ngaham wrote:Another quick question on this. If the fund is starting out with a negative balance, would you then just do this transaction backwards? For example, if a fund is -4794.15.

My questions are these:

1. Which transaction are you referring to, and
2 Why is the fund starting off with a negative balance? Are you talking about the Accounting Fund? An account within the fund??

More specifics please.

NeilZ wrote:

ngaham wrote:Another quick question on this. If the fund is starting out with a negative balance, would you then just do this transaction backwards? For example, if a fund is -4794.15.

My questions are these:

1. Which transaction are you referring to, and
2 Why is the fund starting off with a negative balance?

I am referring to this set of transactions:

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

It is for our Christian School Fund which currently has a negative balance overall. I am assuming you would just reverse the CR and DB on this to produce the negative balance on that fund.

ngaham wrote:

NeilZ wrote:

ngaham wrote:Another quick question on this. If the fund is starting out with a negative balance, would you then just do this transaction backwards? For example, if a fund is -4794.15.

My questions are these:

1. Which transaction are you referring to, and
2 Why is the fund starting off with a negative balance?

I am referring to this set of transactions:

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

It is for our Christian School Fund which currently has a negative balance overall. I am assuming you would just reverse the CR and DB on this to produce the negative balance on that fund.

Um ... you've stumped me on that one.

You really can't reverse the CRedits and make them DeBits as that would be putting money into the Operating fund checking account. And I thought you told me that you entered the balance from the bank statement.

My question would be why is that fund Negative? Obviously you're using money from the other accounts to pay for the School expenses, and that really puts your system into doubt.

I entered in the book balance on the checking account when I when through the setup for Accounting. From there, I went through and used the transfer accounts as you instructed me to and everything has went well. This is our first month using PowerChurch and our school is in the hole. Any other ideas on how to handle this?

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ngaham wrote:I entered in the book balance on the checking account when I when through the setup for Accounting. From there, I went through and used the transfer accounts as you instructed me to and everything has went well. This is our first month using PowerChurch and our school is in the hole. Any other ideas on how to handle this?

Book balance?? I'm assuming that you mean the checkbook's register?? Not a good idea, should have used the bank statement, then entered any checks that have not cleared.

There's no good way to fix this, as its obvious that the funds have been spent, but since you already subtracted it from the bank balance which you used to start with, you can't easily create that negative net asset.

I'm at a loss at what to do here. Let me think about it.

NeilZ wrote:

ngaham wrote:I entered in the book balance on the checking account when I when through the setup for Accounting. From there, I went through and used the transfer accounts as you instructed me to and everything has went well. This is our first month using PowerChurch and our school is in the hole. Any other ideas on how to handle this?

Book balance?? I'm assuming that you mean the checkbook's register?? Not a good idea, should have used the bank statement, then entered any checks that have not cleared.

There's no good way to fix this, as its obvious that the funds have been spent, but since you already subtracted it from the bank balance which you used to start with, you can't easily create that negative net asset.

I'm at a loss at what to do here. Let me think about it.

The book balance (which is what PowerChurch called it) was reconciled and it was the exact same as the bank statement. I did also enter in checks that had not cleared.