Transfer Question

Fund Accounting, Accounts Payable, Accounts Receivable, Payroll

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TeresaZ
Posts: 5
Joined: Thu Jan 02, 2020 9:47 am

Transfer Question

Post by TeresaZ »

I need to transfer a monthly amount from our Tithes (CR account) to our Blessing Account (CR account).
I erroneously had made the entries from checking (DB) to Blessing (CR), but that is not correct. We save 10% of each months total tithes to the Blessing Account to give to special needs other than Benevolence.

What type of entry do I make to move a CR to another CR?

Thank you .... Teresa Z

NeilZ
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Joined: Wed Oct 08, 2003 12:20 am
Location: Monett MO
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Re: Transfer Question

Post by NeilZ »

TeresaZ wrote:
Sun Mar 28, 2021 6:39 am
I need to transfer a monthly amount from our Tithes (CR account) to our Blessing Account (CR account).
I erroneously had made the entries from checking (DB) to Blessing (CR), but that is not correct. We save 10% of each months total tithes to the Blessing Account to give to special needs other than Benevolence.

What type of entry do I make to move a CR to another CR?

Thank you .... Teresa Z
FWIW ... the easiest way to do this is in the Contributions module. I don't know if you're using that or not, but you can setup the 'Blessing' account to receive 10% of every collection received in normal Tithes & Offerings. Then when the contributions are posted, the system properly creates the needed transactions for Funds Accounting. This is the way I suggest you do it as it does it without having any human errors added. This works if only one checking account is used for everything (which is a far easier way to do things).

If you're not using the Contributions module, I would need to know if this Blessing account is a different Accounting Fund or is this just an expense account under Operations? Is it a Temporarily Restricted Account that you have to 'release' funds from? From the description it should be.

Now about moving from one 'CR' account to another. All the 'CRedit' means in this case is that when you CREDIT this account, it increases funds, nothing more. In order to INCREASE the amount of funds, you create the CR half of a transaction using this account. You need to DeBit another account to DECREASE funds in that account.

In the same way, a DB account uses a DEBIT half to increase the funds. This is often used in Liability accounts to increase the liability, and expense accounts in order to increase the total expenses.

If this account is not a Temporarily Restricted Account, I would make it one. It should have its own Income Account and Fund Balance (3000 level) account. You can reuse the current INCOME account for used if you need to make it a Temp Restricted Account.

Of course, if this Blessing account is a separate Accounting Fund, that's a whole different ballgame. In any case, I would need to know exactly how you have this account setup before giving any advice.
Neil Zampella

Using PC+ since 1999.

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