Transferring monies from one acct to another

[angel1]

Good afternoon,
We are using Powerchurch 11.55. We recently closed our money market acct from one bank and opened at another bank for a higher percentage. My question is this: I transferred the monies to our checking acct and wrote a check to the new bank from our checking acct. My question is this tranfer considered pass thorough, or how should I account for it.

Angel

[NeilZ]

Good afternoon,
We are using Powerchurch 11.55. We recently closed our money market acct from one bank and opened at another bank for a higher percentage. My question is this: I transferred the monies to our checking acct and wrote a check to the new bank from our checking acct. My question is this tranfer considered pass thorough, or how should I account for it.

Angel

What did you credit and debit? There should have been two transactions to provide an audit trail.

1. Transfer the funds from the Money Market to checking. This transaction done in Funds Accounting. Add an explanation in the Transaction's comments area.

01-1210-00 Money Market CR 1000.00
01-1110-00 Checking DB 1000.00

Then when you write the check, you'd enter this (I'm assuming that you're going to use a new account number for the money market, if not just annotate that in the check comments area.

2. Check to new MM account done in Accounts Payable, again give comments about the new account, etc in the comments area of the check:

01-1110-000 Checking CR 1000.00
01-1220-000 M.M. DB 1000.00

Does this help?

[TonyL222]

As long as all the accounts involved are in the same accounting fund (in this case, Fund 01 in Neilz's example) that's exactly how I would do it, too. If it involves movement between accounting funds - between a fund 01 to a fund 02 for example - you'll have to use some transfer accounts in order to make the accounts balance. PowerChurch will complain if you try to enter a transaction that directly involves and DB/CR between accounts in two different funds.

This is not a pass through. You are just moving an asset from your left pocket to your right pocket, but it's all the same pair of pants

[angel1]

Thank you both for the assistance.

angel1