contributions credit to wrong account

Fund Accounting, Accounts Payable, Accounts Receivable, Payroll

Moderators: Moderators, Tech Support

Post Reply
neac
Posts: 68
Joined: Mon Jan 28, 2019 8:26 am

contributions credit to wrong account

Post by neac »

Help!
I've discovered that one of our contributions has been crediting to an expense account rather than an income account.

I can make the correction now but since this correction is not retroactive how do I fix the previous 3 months of contributions?

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: contributions credit to wrong account

Post by NeilZ »

neac wrote:Help!
I've discovered that one of our contributions has been crediting to an expense account rather than an income account.

I can make the correction now but since this correction is not retroactive how do I fix the previous 3 months of contributions?
The easiest way to do this is as follows:

Enter the following transaction for each transaction from Contributions that posted to the expense account, numbers are examples only use what you have in your COA and the amount posted:

01-5199-000 Expense DEBIT 500.00
01-4100-000 Income CREDIT 500.00

In the transaction notes add: "Transfer to correct Contributions posted to expense rather than income account on 2019-01-01". Change the 2019-01-01 to the date of the Contributions entry, and enter the date of the new transaction as of the date the Contributions were originally posted to Funds Accounting. The system will post it to the correct month, and this will correct the income & expense for the month.

This may wind up to be 12 transactions entered, but this gives a full audit trail of corrections. However, this move of funds WILL show up in the Income and Expense report, but this is a good thing as it keeps everything visible to your church board.

I'd also head to Contributions to make sure all the Contribution Funds are setup to post to the correct accounts so it won't happen in future.
Neil Zampella

Using PC+ since 1999.

neac
Posts: 68
Joined: Mon Jan 28, 2019 8:26 am

Re: contributions credit to wrong account

Post by neac »

Is there anything that needs to be changed in the Contributions module?

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: contributions credit to wrong account

Post by NeilZ »

neac wrote:Is there anything that needs to be changed in the Contributions module?
You mean other than pointing the Contribution Fund to the correct income account?? No, as the Contribution Fund was incorrectly setup.
Normally, the only two types of accounts that a Contribution Fund should point to are Income accounts, and Liability accounts.

The reason for Income accounts is self-evident. Liability accounts however are not, these are usually used for 'pass-thru' contributions. Funds that the church cannot claim as income, and is obligated to pay to a third-party. Such as a collection for the Gideons, and so on.
Neil Zampella

Using PC+ since 1999.

neac
Posts: 68
Joined: Mon Jan 28, 2019 8:26 am

Re: contributions credit to wrong account

Post by neac »

Alright, thanks again for the help

Post Reply