Cash Question

[ngaham]

Hey,
Our church operates a fairly large basketball tournament and it is this week. Our youth pastor came to me and said that he needed cash to provide change for the concession booth. What is the best way to handle this?

[NeilZ]

Hey,
Our church operates a fairly large basketball tournament and it is this week. Our youth pastor came to me and said that he needed cash to provide change for the concession booth. What is the best way to handle this?

There's no good way to handle this, outside of creating a petty cash account. Then when the funds are returned, you create a separate deposit, and basically enter a funds accounting transaction that is the reverse of the original used to add funds.

This thread will help:

https://www.powerchurch.com/forum/viewt ... 70&p=26434

[ngaham]

Thanks for the answer Neil, as always. Quick clarification. If we give say $300 in change. I would remove $300 from the “income” on the concessions prior to depositing it into checking or counting it as income, right? We could either then keep that in the safe and show that in PC, or deposit it back in the bank. Just wanted to make sure I understood.

[NeilZ]

Thanks for the answer Neil, as always. Quick clarification. If we give say $300 in change. I would remove $300 from the “income” on the concessions prior to depositing it into checking or counting it as income, right? We could either then keep that in the safe and show that in PC, or deposit it back in the bank. Just wanted to make sure I understood.

Exactly .. the $300.00 is seed. It should NOT be counted as Income, so it comes 'off the top'. You can keep the funds in petty cash for the next time it is needed.

[ngaham]

Hey Neil,
New development here. We issued the check for $606 (there was a $6 fee at the bank) for the "seed" money. The problem is that the treasurer has deposited the money and I have recored it in the contributions module - completely forgetting about this. What is the correcting steps for this? Should I reverse the contribution or is there a transaction I could issue to decrease the income and credit the petty cash account back to zero, since it has been deposited.

[NeilZ]

Hey Neil,
New development here. We issued the check for $606 (there was a $6 fee at the bank) for the "seed" money. The problem is that the treasurer has deposited the money and I have recored it in the contributions module - completely forgetting about this. What is the correcting steps for this? Should I reverse the contribution or is there a transaction I could issue to decrease the income and credit the petty cash account back to zero, since it has been deposited.

Reverse the Contribution, and then POST Contributions. Do this separately from regular contributions. The system will create the proper transactions for Funds Accounting when you post. You want to do this to correct the data in the Contributions module.

You then want to enter a Funds Accounting transaction to clear the petty cash and return the funds to checking.

Basically CR Petty Cash and DB Checking.

[ngaham]

Just so I am clear. Reverse the contribution and then re-enter the contribution minus the petty cash that was included in error. I am drawing a blank on how to show the petty cash as being returned to the church and then deposited on the same date (01/21/2018)

[NeilZ]

Just so I am clear. Reverse the contribution and then re-enter the contribution minus the petty cash that was included in error. I am drawing a blank on how to show the petty cash as being returned to the church and then deposited on the same date (01/21/2018)

What you're doing is basically reversing the transaction use used to put the money in Petty Cash. CR the petty cash account, and DB the checking.

[ngaham]

Just so I am clear. Reverse the contribution and then re-enter the contribution minus the petty cash that was included in error. I am drawing a blank on how to show the petty cash as being returned to the church and then deposited on the same date (01/21/2018)

What you're doing is basically reversing the transaction use used to put the money in Petty Cash. CR the petty cash account, and DB the checking.

I already showed the petty cash as an expense for the concessions when I wrote the check for cash, like the other post showed. Perhaps this is where I went wrong? I am confused on how to show the petty cash as coming back in since there is no contribution fund established for it. Sorry that I keep repeating myself, I just want to make sure I do this right.

[NeilZ]

Just so I am clear. Reverse the contribution and then re-enter the contribution minus the petty cash that was included in error. I am drawing a blank on how to show the petty cash as being returned to the church and then deposited on the same date (01/21/2018)

What you're doing is basically reversing the transaction use used to put the money in Petty Cash. CR the petty cash account, and DB the checking.

I already showed the petty cash as an expense for the concessions when I wrote the check for cash, like the other post showed. Perhaps this is where I went wrong? I am confused on how to show the petty cash as coming back in since there is no contribution fund established for it. Sorry that I keep repeating myself, I just want to make sure I do this right.

This is NOT a contribution, it is not income, you are returning funds to the checking account.

The issue is that you created an 'expense' .. that was not what I suggested. When you create petty cash, you create a new asset account, and then 'transfer' the funds to the petty cash by basically writing a check for 'cash' to cash at the bank to get the 'till' for the sales at the event. Lets use a 'till' of $150.00

Instead of DB an expense, you would DB the Petty Cash account and CR checking for $150.00. This would have to be a manually written check, with the vendor being the church. Then once the event is over, you would take the $150.00 off the top of the proceeds and create a separate deposit slip for $150.00. This gets deposited separately apart from the rest of the proceeds. You would then go into Funds Accounting -> Enter Transactions, and enter another transaction to return the funds back to checking. Again you would CR the petty cash, and DB the checking account. This WILL show up in the Checking reconciliation as a deposit.

[ngaham]

Hey Neil,
I am running into problems with this for my reconciliation. I entered it as you stated, DB the Petty Cash Asset and Credit the Checking account. However, when I go into the reconciliation window, it shows the check amount as "0.00", even though the amount was entered correctly in the manual check. I thought there was perhaps a system error so I voided the check and reissued it, however both the void and reissue check show on the checks and other subtractions column on the reconciliation.

[ngaham]

It doesn’t. When I clear the item, the bottom amount doesn’t change at all.

[NeilZ]

Hey Neil,
I am running into problems with this for my reconciliation. I entered it as you stated, DB the Petty Cash Asset and Credit the Checking account. However, when I go into the reconciliation window, it shows the check amount as "0.00", even though the amount was entered correctly in the manual check. I thought there was perhaps a system error so I voided the check and reissued it, however both the void and reissue check show on the checks and other subtractions column on the reconciliation.

Is this for the initial check to fund the $150.00 ?? That should have DB petty cash, and CR checking, did you do that through AR?

Are you also creating the deposit which CR the petty cash, and DB the Checking in Funds Accounting ?

Or are you doing both through Funds Accounting. That's what it sounds like.

[ngaham]

I am trying to show the check (through AP) for the cash. The cash has not been deposited yet so I haven’t done that transaction. I did it as a manual check as you said to.

[NeilZ]

I am trying to show the check (through AP) for the cash. The cash has not been deposited yet so I haven’t done that transaction. I did it as a manual check as you said to.

Sorry, meant AP ...

So a manual check showing $150.00 is not showing up??

Here's an exact transaction created to 'refresh' petty cash. This turned up in the reconciliation

Ref/Check no: 4348 Transaction Desc : Pastor (name removed)
01-1110-000 Primary Checking DB 40.00
01-1251-020 Pastor's Disc Petty Cash CR 40.00

This is a check, period, it showed up.


You haven't done the deposit yet, so it won't show up obviously.


EDITED ... Just realized ... Did I tell you to do that backwards ?? Oh good grief ... I do apologize for that one.