Pre Paid

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bking403
Posts: 9
Joined: Mon Aug 13, 2018 1:29 pm

Pre Paid

Post by bking403 »

Yes we deal with Mission and Per Capita from churches i had a church pay in 2020 their per capita for 2021 however i couldn't apply it yet i applied it to our account accoutns receivable which was Pre-Paid Per Capita which is account numbe 01-1239-000 in my powerchurch which it debited and the credited my account 01-2020-000 Next year Per capita. However they also over paid so they asked if it could be applied to mission. The church has been inputted in the system with their pledge. Did i post it wrong i went into accounts receivables and did a credit memo applying it to the accounts i would of under the contributions. However after i did tha and post it , one it doesn't show they paid and two i have to also tfr from checking $11.17 from the 01 checking to the 03 check because part of the mission is under another fund. The amont of pre-paid per capita is in my other assets is that to remain their after i apply my credit. I don't know if i messed up this whole posting transaction.

NeilZ
Posts: 10208
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
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Re: Pre Paid

Post by NeilZ »

bking403 wrote:
Mon Jan 25, 2021 11:34 am
Yes we deal with Mission and Per Capita from churches i had a church pay in 2020 their per capita for 2021 however i couldn't apply it yet i applied it to our account accoutns receivable which was Pre-Paid Per Capita which is account numbe 01-1239-000 in my powerchurch which it debited and the credited my account 01-2020-000 Next year Per capita. However they also over paid so they asked if it could be applied to mission. The church has been inputted in the system with their pledge. Did i post it wrong i went into accounts receivables and did a credit memo applying it to the accounts i would of under the contributions. However after i did tha and post it , one it doesn't show they paid and two i have to also tfr from checking $11.17 from the 01 checking to the 03 check because part of the mission is under another fund. The amont of pre-paid per capita is in my other assets is that to remain their after i apply my credit. I don't know if i messed up this whole posting transaction.
FWIW ... I never treated such payments to the presbytery when I was its treasurer as 'Accounts Receivables', they were always treated as Contributions. In that manner you were able to enter their pledges, and if they paid in the previous year, you would have entered that amount as the Pledge start balance. Since it was Contributions, you can easily split the payments between the normal 'per Capita' and any other fund such as missions without having the issues you're having.

Since churches, as well as Presbyteries work on a cash basis, having a 'prepaid' asset that you have to roll over in the next year really doesn't do much.

I can honestly say that I've not had any experience with the way you're doing things, so I hope that one of the Powerchurch accountant/trainers comes by to comment.
Neil Zampella

Using PC+ since 1999.

bking403
Posts: 9
Joined: Mon Aug 13, 2018 1:29 pm

Re: Pre Paid

Post by bking403 »

However these was paid in advance for next year received in 2020 but it was for their 2021 per capita not previous years behind. So how can i correct the situation if i used accounts receivable for this then credit the church but i need for it to show that they paid thier pledge.

NeilZ
Posts: 10208
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: Pre Paid

Post by NeilZ »

bking403 wrote:
Tue Feb 02, 2021 10:13 am
However these was paid in advance for next year received in 2020 but it was for their 2021 per capita not previous years behind. So how can i correct the situation if i used accounts receivable for this then credit the church but i need for it to show that they paid thier pledge.
You still need to show in CONTRIBUTIONS that the amount was prepaid in the pledge start balance. We are in 2021, by previous year I mean 2020.

As far as correcting the use of AR instead of Contributions, I suggest you have a long discussion with your Presbytery council. You cannot reflect funds received in 2020 in the 2021 income, period. Cash basis accounting does not work that way.

What I used to do what include in my end-of-year report the total funds received by Dec 31 that were payments for the 2021 per capita. I used the Contribution pledge reports to show what was received toward the per capita, which also accounted for the 2020 pre-payments.
Neil Zampella

Using PC+ since 1999.

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