Showing A Credit

[brentbond]

I have paid a vendor a large amount of money for a service (a musical performance) several months ago. Since they have cashed the check, it shows as an expense in my I&E Report. The performance was cancelled due to the virus but I have rescheduled it to 2021 (which will be in my new fiscal year).

In my current fiscal year how can I move this "expense" to show as a "credit" (in the income portion of my current I&E Report or back to some kind of "hold" entry in my Balance Sheet) without having them write me a check and putting it back in as income and then issuing them another invoice come my new fiscal year? I am trying to do this so I don't show a gigantic loss (the act was $28,500) for this fiscal year.

[NeilZ]

I have paid a vendor a large amount of money for a service (a musical performance) several months ago. Since they have cashed the check, it shows as an expense in my I&E Report. The performance was cancelled due to the virus but I have rescheduled it to 2021 (which will be in my new fiscal year).

In my current fiscal year how can I move this "expense" to show as a "credit" (in the income portion of my current I&E Report or back to some kind of "hold" entry in my Balance Sheet) without having them write me a check and putting it back in as income and then issuing them another invoice come my new fiscal year? I am trying to do this so I don't show a gigantic loss (the act was $28,500) for this fiscal year.

You really shouldn't. Churches are run on a cash basis. The funds have already left the checking account. Unlike a business you can't move funds around from one accounting year to another. You will take the loss as the funds were expended in this fiscal year. Next year you will probably see a huge increase in income because of the ticket sales for next year.

I would talk to a good accountant well versed in church fund accounting practices to see if they have any other recourse.