Setting Up Multiple Accounting Funds

[DBS_CBC]

Our church has decided to make the move from our existing software to PowerChurch V12.2, and are setting up multiple Accounting Funds. I understand the requirement to link the shared asset accounts (Checking, Savings, etc.) across the funds by using the same account number in each fund. But, are there any other accounts that must be shared across all Accounting Funds. For example, in the default chart of accounts created by PC, account 3110 is the Unrestricted Net Assets detail Equity account. Is this account required to be shared in all other Accounting Funds in order for proper reporting across funds?

[NeilZ]

Our church has decided to make the move from our existing software to PowerChurch V12.2, and are setting up multiple Accounting Funds. I understand the requirement to link the shared asset accounts (Checking, Savings, etc.) across the funds by using the same account number in each fund. But, are there any other accounts that must be shared across all Accounting Funds. For example, in the default chart of accounts created by PC, account 3110 is the Unrestricted Net Assets detail Equity account. Is this account required to be shared in all other Accounting Funds in order for proper reporting across funds?

Its a good idea to keep the Unrestricted Net Assets account number across any other funds being used as its the default, and frankly, the system keeps all the data separate. You can change it, but there's really no need. I However, other temp restricted funds need not be shared across those funds.

The reason those asset accounts are linked is due to the fact that you may be writing checks against those accounts from any of the separate Accounting Funds. When you a reconciliation, the system will show all those checks, whether written from the 01-Fund, or the 02-Fund.

[DBS_CBC]

Our church has decided to make the move from our existing software to PowerChurch V12.2, and are setting up multiple Accounting Funds. I understand the requirement to link the shared asset accounts (Checking, Savings, etc.) across the funds by using the same account number in each fund. But, are there any other accounts that must be shared across all Accounting Funds. For example, in the default chart of accounts created by PC, account 3110 is the Unrestricted Net Assets detail Equity account. Is this account required to be shared in all other Accounting Funds in order for proper reporting across funds?

Its a good idea to keep the Unrestricted Net Assets account number across any other funds being used as its the default, and frankly, the system keeps all the data separate. You can change it, but there's really no need. I However, other temp restricted funds need not be shared across those funds.

The reason those asset accounts are linked is due to the fact that you may be writing checks against those accounts from any of the separate Accounting Funds. When you a reconciliation, the system will show all those checks, whether written from the 01-Fund, or the 02-Fund.

Neil,
Thanks for the quick reply. I understand the need to link checking and savings accounts between funds, but not sure about the 3110 unrestricted asset. For example, I modified the default chart of accounts for use as our 01 Fund - UNIFIED BUDGET (Operating Fund) I renamed the 01-3110-000 equity account UNIFIED BUDGET and closed all budget income (unrestricted Tithes and Offerings Contributions) and all budget expense accounts to 3110. In a separate Accounting Fund BH with its own checking asset account, I set up an equity detail account BH-3120-000 as the BH Operating Fund account and all BH income and expenses close to that account. I did not copy (link) the 01-3110-00 account to the BH Fund. Is this correct or am I missing something?

[NeilZ]

Its a good idea to keep the Unrestricted Net Assets account number across any other funds being used as its the default, and frankly, the system keeps all the data separate. You can change it, but there's really no need. I However, other temp restricted funds need not be shared across those funds.

The reason those asset accounts are linked is due to the fact that you may be writing checks against those accounts from any of the separate Accounting Funds. When you a reconciliation, the system will show all those checks, whether written from the 01-Fund, or the 02-Fund.

Neil,
Thanks for the quick reply. I understand the need to link checking and savings accounts between funds, but not sure about the 3110 unrestricted asset. For example, I modified the default chart of accounts for use as our 01 Fund - UNIFIED BUDGET (Operating Fund) I renamed the 01-3110-000 equity account UNIFIED BUDGET and closed all budget income (unrestricted Tithes and Offerings Contributions) and all budget expense accounts to 3110. In a separate Accounting Fund BH with its own checking asset account, I set up an equity detail account BH-3120-000 as the BH Operating Fund account and all BH income and expenses close to that account. I did not copy (link) the 01-3110-00 account to the BH Fund. Is this correct or am I missing something?

Outside of the ASSET accounts, using the same NUMBER across different Accounting Fund does NOT link the Fund Balance accounts. Using the same 3110-000 just allows you to realize the same account number is for Unrestricted Net Assets across the board. As long as you are sure that the BH-1110-0000 defaults to the BH-3120-000, and that all expense accounts under the BH Accounting Fund close to BH- 3120-000 you're fine.

However, if you add new expense accounts to the BH Accounting Fund, you may need to select or verify that they close to the BH-3120-000 account.

[DBS_CBC]

Its a good idea to keep the Unrestricted Net Assets account number across any other funds being used as its the default, and frankly, the system keeps all the data separate. You can change it, but there's really no need. I However, other temp restricted funds need not be shared across those funds.

The reason those asset accounts are linked is due to the fact that you may be writing checks against those accounts from any of the separate Accounting Funds. When you a reconciliation, the system will show all those checks, whether written from the 01-Fund, or the 02-Fund.

Neil,
Thanks for the quick reply. I understand the need to link checking and savings accounts between funds, but not sure about the 3110 unrestricted asset. For example, I modified the default chart of accounts for use as our 01 Fund - UNIFIED BUDGET (Operating Fund) I renamed the 01-3110-000 equity account UNIFIED BUDGET and closed all budget income (unrestricted Tithes and Offerings Contributions) and all budget expense accounts to 3110. In a separate Accounting Fund BH with its own checking asset account, I set up an equity detail account BH-3120-000 as the BH Operating Fund account and all BH income and expenses close to that account. I did not copy (link) the 01-3110-00 account to the BH Fund. Is this correct or am I missing something?

Outside of the ASSET accounts, using the same NUMBER across different Accounting Fund does NOT link the Fund Balance accounts. Using the same 3110-000 just allows you to realize the same account number is for Unrestricted Net Assets across the board. As long as you are sure that the BH-1110-0000 defaults to the BH-3120-000, and that all expense accounts under the BH Accounting Fund close to BH- 3120-000 you're fine.

However, if you add new expense accounts to the BH Accounting Fund, you may need to select or verify that they close to the BH-3120-000 account.

Neil,
I guess I really did miss something. I assumed that the core four digits of the account number could only be used once, partially to allow the use of asset accounts across Accounting Funds and also to allow the merging of Accounting Funds. So, I can have detail income accounts of 01-4111-000 and BH-4111-000 without conflict? And the same is true for group account numbers? I don't want to assume anything else. Thanks for you patience and help.

[NeilZ]

Neil,
I guess I really did miss something. I assumed that the core four digits of the account number could only be used once, partially to allow the use of asset accounts across Accounting Funds and also to allow the merging of Accounting Funds. So, I can have detail income accounts of 01-4111-000 and BH-4111-000 without conflict? And the same is true for group account numbers? I don't want to assume anything else. Thanks for you patience and help.

Yep .. normally Tithes and Offerings are 4030-000 ... you can use that across funds .. say you have the following:
Operating 01-4030-000, you can then have a Building BD-4030-000 ... both listed as Tithes & Offerings, each shows up in its individual Accounting Fund.

[DBS_CBC]

Neil,
I guess I really did miss something. I assumed that the core four digits of the account number could only be used once, partially to allow the use of asset accounts across Accounting Funds and also to allow the merging of Accounting Funds. So, I can have detail income accounts of 01-4111-000 and BH-4111-000 without conflict? And the same is true for group account numbers? I don't want to assume anything else. Thanks for you patience and help.

Yep .. normally Tithes and Offerings are 4030-000 ... you can use that across funds .. say you have the following:
Operating 01-4030-000, you can then have a Building BD-4030-000 ... both listed as Tithes & Offerings, each shows up in its individual Accounting Fund.

Thanks for clearing those things up for me. I think I have all of the Accounting Funds set up the way they need to be. I am ready to take the plunge with getting beginning balances, accounting, and contribution data entered. (We have decided to input all YTD data for 2020). So, since the program tracks the balance allocated to each Accounting Find when a checking account is shared, am I right to split the actual starting balance of the checking account between the funds. For example, with the Shared Checking account 1110 beginning balance of $50,000.00, the Accounting Fund 01 Equity account beginning balance of $35,000, and the Accounting Fund BH Equity account beginning balance of $15,000.00, I would enter $35,000.00 in 01-1110-000 and $15,000.00 in the BH-1110-000 checking accounts.

[NeilZ]

Thanks for clearing those things up for me. I think I have all of the Accounting Funds set up the way they need to be. I am ready to take the plunge with getting beginning balances, accounting, and contribution data entered. (We have decided to input all YTD data for 2020). So, since the program tracks the balance allocated to each Accounting Find when a checking account is shared, am I right to split the actual starting balance of the checking account between the funds. For example, with the Shared Checking account 1110 beginning balance of $50,000.00, the Accounting Fund 01 Equity account beginning balance of $35,000, and the Accounting Fund BH Equity account beginning balance of $15,000.00, I would enter $35,000.00 in 01-1110-000 and $15,000.00 in the BH-1110-000 checking accounts.

Are you using the Setup Assistant to initially setup the Operations fund, I'm assuming that's fund 01 which is the default. If so, you should enter that starting balance there.

Then when you create the other fund and its COA, you would then DB the Checking, and CR the unrestricted net assets.

[DBS_CBC]

Thanks for clearing those things up for me. I think I have all of the Accounting Funds set up the way they need to be. I am ready to take the plunge with getting beginning balances, accounting, and contribution data entered. (We have decided to input all YTD data for 2020). So, since the program tracks the balance allocated to each Accounting Find when a checking account is shared, am I right to split the actual starting balance of the checking account between the funds. For example, with the Shared Checking account 1110 beginning balance of $50,000.00, the Accounting Fund 01 Equity account beginning balance of $35,000, and the Accounting Fund BH Equity account beginning balance of $15,000.00, I would enter $35,000.00 in 01-1110-000 and $15,000.00 in the BH-1110-000 checking accounts.

Are you using the Setup Assistant to initially setup the Operations fund, I'm assuming that's fund 01 which is the default. If so, you should enter that starting balance there.

Then when you create the other fund and its COA, you would then DB the Checking, and CR the unrestricted net assets.

Unfortunately, I realized that I needed to make some changes after running Setup Assistant that having account transactions seemed to be blocking. Not wanting to lose all of the COA with a restart, I opted to use the Delete Old Data function.

[NeilZ]

Thanks for clearing those things up for me. I think I have all of the Accounting Funds set up the way they need to be. I am ready to take the plunge with getting beginning balances, accounting, and contribution data entered. (We have decided to input all YTD data for 2020). So, since the program tracks the balance allocated to each Accounting Find when a checking account is shared, am I right to split the actual starting balance of the checking account between the funds. For example, with the Shared Checking account 1110 beginning balance of $50,000.00, the Accounting Fund 01 Equity account beginning balance of $35,000, and the Accounting Fund BH Equity account beginning balance of $15,000.00, I would enter $35,000.00 in 01-1110-000 and $15,000.00 in the BH-1110-000 checking accounts.

Are you using the Setup Assistant to initially setup the Operations fund, I'm assuming that's fund 01 which is the default. If so, you should enter that starting balance there.

Then when you create the other fund and its COA, you would then DB the Checking, and CR the unrestricted net assets.

Unfortunately, I realized that I needed to make some changes after running Setup Assistant that having account transactions seemed to be blocking. Not wanting to lose all of the COA with a restart, I opted to use the Delete Old Data function.

You would then create the transaction as I described for both funds.

[DBS_CBC]

Thanks again for your patience and help.