Transferred money looks like income
Moderators: Moderators, Tech Support
Transferred money looks like income
We have a checking (1110) and a savings account (1210) set up. When we transfer funds from our savings to our checking, our income/expense report shows it as income, when in fact it is money we already had. Is there any way around this?
Online
For example:
01-1110-000 Checking CR 100.00
01-1210-000 Savings DB 100.00
Re: Transferred money looks like income
I'm going to assume that the two accounts are in the same accounting fund, and that you're using Transfer accounts? This is not needed when you're moving between asset (bank) accounts that are in the same accounting fund, a simple two line credit/debit transaction would do this.
For example:
01-1110-000 Checking CR 100.00
01-1210-000 Savings DB 100.00
Neil Zampella
Using PC+ since 1999.
Using PC+ since 1999.
Re: Transferred money looks like income
OK I will start doing it that way. I am a new bookkeeper and the previous bookkeeper used transfer accounts and equity accounts and accounts called 'release from restriction' and equity accounts that close to the restricted funds, I think that it could be done in a much simpler fashion. We do have restricted checking and savings funds but I think that just debiting and crediting those funds as I post things would be much easier.
Also, can I add income to an expense account? For example, for our VBS we have expenses and an equal amount of income, and it is usually a wash at the end of the year. When we get income, I would like to put it on the expense line item, otherwise the Income/Expense reports show that VBS is all expense and the income looks like we got income from giving instead of VBS tuition.
Is this possible?
Also, can I add income to an expense account? For example, for our VBS we have expenses and an equal amount of income, and it is usually a wash at the end of the year. When we get income, I would like to put it on the expense line item, otherwise the Income/Expense reports show that VBS is all expense and the income looks like we got income from giving instead of VBS tuition.
Is this possible?
Online
HOWEVER ... the Release from Restriction accounts are needed. They are used when you release funds from a Donor Restricted account within an accounting fund. This does assume that the restricted accounts are using the same checking account. If the restricted account is indeed using a separate bank account, then what you propose should work.
For example your COA probably looks like this:
Basically three headers and then the INCOME account.
You can add an additional income account like this - if the system was setup using the defaults the header may be already there:
Re: Transferred money looks like income
Transfer accounts are only needed if you're moving funds between accounts funds (IE: from a Building Accounting Fund to Operations), within a fund the transaction I mentioned will work.Lolbkpr wrote: ↑Fri Apr 24, 2020 2:22 pmOK I will start doing it that way. I am a new bookkeeper and the previous bookkeeper used transfer accounts and equity accounts and accounts called 'release from restriction' and equity accounts that close to the restricted funds, I think that it could be done in a much simpler fashion. We do have restricted checking and savings funds but I think that just debiting and crediting those funds as I post things would be much easier.
HOWEVER ... the Release from Restriction accounts are needed. They are used when you release funds from a Donor Restricted account within an accounting fund. This does assume that the restricted accounts are using the same checking account. If the restricted account is indeed using a separate bank account, then what you propose should work.
You should always show income as income, however, you should use a separate INCOME account for the VBS income (4000 series account).Also, can I add income to an expense account? For example, for our VBS we have expenses and an equal amount of income, and it is usually a wash at the end of the year. When we get income, I would like to put it on the expense line item, otherwise the Income/Expense reports show that VBS is all expense and the income looks like we got income from giving instead of VBS tuition.
Is this possible?
For example your COA probably looks like this:
Code: Select all
4000-000 INCOME
4010-000 CONTRIBUTION INCOME
4020-000 UNRESTRICTED
4030-000 Tithes and Offereings Income
You can add an additional income account like this - if the system was setup using the defaults the header may be already there:
Code: Select all
4600-000 MISCELLANEOUS INCOME
4610-000 VBS Income
Neil Zampella
Using PC+ since 1999.
Using PC+ since 1999.