Processing Refunds from Vendors and Utilities

Fund Accounting, Accounts Payable, Accounts Receivable, Payroll

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nbkuz92
Posts: 6
Joined: Sat May 21, 2016 8:23 pm

Processing Refunds from Vendors and Utilities

Post by nbkuz92 »

Our Financial Secretary has been creating Family entries for any vendor or utility that issues a check for a refund of overpayment. This causes our Family Membership list to become bloated with vendors and utilities. Furthermore, the Financial Secretary records these as contributions, likely the reason why they are created in the Family membership. :wall:

I would like to revise the process so that we are no longer adding these vendors/utility companies in our membership database and stop the practice of entering them as contributions. We have an independent CPA doing our Accounting so we no longer use the PC Accounting module, however, we would like to track these receipts somewhere in PowerChurch without making them contributions.

Please advise.

Daniel

NeilZ
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Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
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Re: Processing Refunds from Vendors and Utilities

Post by NeilZ »

nbkuz92 wrote:
Sat Sep 19, 2020 5:30 pm
Our Financial Secretary has been creating Family entries for any vendor or utility that issues a check for a refund of overpayment. This causes our Family Membership list to become bloated with vendors and utilities. Furthermore, the Financial Secretary records these as contributions, likely the reason why they are created in the Family membership. :wall:

I would like to revise the process so that we are no longer adding these vendors/utility companies in our membership database and stop the practice of entering them as contributions. We have an independent CPA doing our Accounting so we no longer use the PC Accounting module, however, we would like to track these receipts somewhere in PowerChurch without making them contributions.

Please advise.

Daniel
What's really bad is that the funds are being counted twice. Once when they were given, and again when they're a refund. Not to mention that the expenses are then thrown off.

If you're not using the Accounting Module, these checks should be deposited separately, and the deposit receipt given to the CPA along with the ministry expense account that should be credited. You should not be entering these refunds through Contributions as they are NOT new income. These are funds you already have, spent, but have had refunded back to the church.

If you were using the Accounting Module, you'd either enter a Manual Check with a check number/desc of REFUND, the amount refunded would be listed as a DEBIT to the Checking Account, and a CREDIT to the original expense account.

My advice is to talk to the CPA and see how they want these refunds treated. Since they are handling the accounting, they should be the ones who make the proper entries. I'm surprised they haven't questioned you about this previously.

In any case, stop treating these as 'new income'.
Neil Zampella

Using PC+ since 1999.

nbkuz92
Posts: 6
Joined: Sat May 21, 2016 8:23 pm

Re: Processing Refunds from Vendors and Utilities

Post by nbkuz92 »

Thank You. Now I need to work on cleaning up the Contributions and Membership. It is strange to see our Insurance and Utility Companies listed in our Family Membership and Contributions.

Blessings to you and may Christ be glorified.

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