Accounting

[meadowbrookfwbchurch]

We are setting up PCPlus 12.2 for the time. At the end of each month, 15% of all unrestricted income is given to missions. It is divided up among several different groups and then the balance of all the groups, except one, is paid out. During the month, some individuals also contribute to the different groups. Should this be another fund or should it be temporary restricted income/expenses in the general fund?

[NeilZ]

We are setting up PCPlus 12.2 for the time. At the end of each month, 15% of all unrestricted income is given to missions. It is divided up among several different groups and then the balance of all the groups, except one, is paid out. During the month, some individuals also contribute to the different groups. Should this be another fund or should it be temporary restricted income/expenses in the general fund?

OK ... on the Contributions side, you can create a few separate Contribution Funds to reflect the donations to the different groups, but that all feed to the same Donor Restricted Account in Funds Accounting.

As you can tell, I'd use a Donor Restricted Account. This would keep the funds separate from the normal Operations fund balance/net assets, and would allow you to release the funds to cover the pay outs to the different groups. If you want to keep a record of what is paid out to each group, you could have separate expense accounts under Missions for each group. I would just figure those accounts in when you setup the Chart of Accounts, no need to create them through the Maintain Donor Restrictions function. Creating expense accounts using that function is optional anyway. Including them when you create the CoA gives you more flexibility.

Does this help?

[meadowbrookfwbchurch]

I think so. I am just now working on the COA.
To move the 15% from unrestricted tithes to the Missions accounts, would I Debit the Unrestricted Tithes and Credit the individual mission groups?
Also, I have read about the release accounts, but to clarify it for me - I think I would have to have a separate release account for each mission account in order to have a correct balance for each one.

[NeilZ]

I think so. I am just now working on the COA.
To move the 15% from unrestricted tithes to the Missions accounts, would I Debit the Unrestricted Tithes and Credit the individual mission groups?
Also, I have read about the release accounts, but to clarify it for me - I think I would have to have a separate release account for each mission account in order to have a correct balance for each one.

Basically, all you would need to do is write the check against your normal checking account (Credit checking) and debit the particular expense account. You would then release the funds at the same time from the restricted funds. The system will properly create the needed transaction.

So if you have 3 missions you support, you'd have expense account as follows:

If Missions falls under the 5900 series, then you'd have supported missions as 5950 series, so
Mission 1 expense: 5951-000
Mission 2 : 5952-000
Mission 3 : 5953-000

That's all you need for the missions.


As far as release accounts, you only need ONE, when you create the donor restricted account, the system will ask you for the fund balance account number (usually a 3200 series account number) it will then ask you to create a release account, (usually a 4800 series account) its a good idea that you keep the last two numbers the same, so the restricted funds account is 3210, and the release account is 4810. The system will then use a 4999 series account which is a system use only account.