Transferring Between Temp Restricted Accts

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cmdouglas0330
Posts: 5
Joined: Wed May 27, 2020 5:13 pm

Transferring Between Temp Restricted Accts

Post by cmdouglas0330 »

Help: I am having a problem trying to transfer restricted amounts between restricted accounts. I believe that I understand the "method" of transferring because I have successfully done this with another fund BUT when I try to transfer the restricted contributions from Building Fund 01 housed in our Main Checking (the account where the donors send their contributions) to Building Fund 02 in the Restricted Fund 02 Checking Acct (Totally Different Checking Acct from the Main Acct); The amount "increases" in Fund 01 when I follow the online tutorials which displays the amounts incorrectly. Meaning if I choose the Fund 01 Restricted BLDG Fund (the Fund in which the amount is coming from) and "Credit"(FROM) that fund with the designated amount; and then try to "Debit"(TO) the Fund 02 Restricted acct with the amount. The Fund 01 Acct (increases). I tried this with and without adding the transfer accts as transactions. The only way I was able to see the amount "decrease" from the Fund 01 acct and the Fund 02 acct increase was to reverse the transaction entries...meaning that even though I wanted 83 from Fund 01 to go to Fund 02 acct was to put 83 in the Debit (TO) for Fund 01 and Credit 83 (FROM) Fund 02 and technically it's not right AND the transfer accounts showed the amounts as reversed as well. Instead of the negative entry being shown under Fund 01; Fund 01 was shown like the amount was added; and Fund 02 had a negative entry but should have shown a positive entry to show money added. Please help me figure this out...should I be using Release Funds from Fund 01 and then Add those entries to Fund 02 as new transactions?? I'm stumped

NeilZ
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Re: Transferring Between Temp Restricted Accts

Post by NeilZ »

cmdouglas0330 wrote:
Wed Mar 31, 2021 9:29 pm
Help: I am having a problem trying to transfer restricted amounts between restricted accounts. I believe that I understand the "method" of transferring because I have successfully done this with another fund BUT when I try to transfer the restricted contributions from Building Fund 01 housed in our Main Checking (the account where the donors send their contributions) to Building Fund 02 in the Restricted Fund 02 Checking Acct (Totally Different Checking Acct from the Main Acct); The amount "increases" in Fund 01 when I follow the online tutorials which displays the amounts incorrectly. Meaning if I choose the Fund 01 Restricted BLDG Fund (the Fund in which the amount is coming from) and "Credit"(FROM) that fund with the designated amount; and then try to "Debit"(TO) the Fund 02 Restricted acct with the amount. The Fund 01 Acct (increases). I tried this with and without adding the transfer accts as transactions. The only way I was able to see the amount "decrease" from the Fund 01 acct and the Fund 02 acct increase was to reverse the transaction entries...meaning that even though I wanted 83 from Fund 01 to go to Fund 02 acct was to put 83 in the Debit (TO) for Fund 01 and Credit 83 (FROM) Fund 02 and technically it's not right AND the transfer accounts showed the amounts as reversed as well. Instead of the negative entry being shown under Fund 01; Fund 01 was shown like the amount was added; and Fund 02 had a negative entry but should have shown a positive entry to show money added. Please help me figure this out...should I be using Release Funds from Fund 01 and then Add those entries to Fund 02 as new transactions?? I'm stumped
Please explain what exactly Accounting Fund 02 is for, as I'm assuming 01 is the standard operating fund. Is it only for building use? If so, why create a restricted account in what is basically a restricted fund with its own checking account? That said ....

What I would do is this:

1. Create a transaction that just releases the amount of funds you want to move from the 01 Fund restricted account. You can basically do that by opening the Funds Accounting -> Enter Transaction function, and clicking on the Release Restricted Funds button. It will ask you how much you want to move, and will properly create the transaction entries moving the funds from the restricted assets (fund balance) account to the unrestricted assets (fund balance) account. I would add as much information to the 'Notes area for audit trail purposes.

2. You would then create the transfer transaction using the 'simple transfer' model as shown here:

Code: Select all

01-1110-000 Checking Account                     CR 750.00
01-9100-000 Transfer to Other Funds     DB 750.00
02-1110-000 Checking Account            DB 750.00
02-9200-000 Transfer from Other Funds            CR 750.00
3. I would then create the transaction that would move the funds from the 02 unrestricted net assets (normally 3110-000) to the restricted account by DeBiting the net assets, and CRediting the restricted assets account, using 3220-000 as an example.

Code: Select all

02-3110-000    Unrestricted Net Assets DB 2000.00
02-3220-000    Restricted Funds                      CR 2000.000
Again, include as much data as possible in the notes area of the transaction for audit purposes. This should work.

As I usually do, I advise doing a backup of the accounting database so you can easily back out of any changes if this does not turn out correctly.

In the long term, I'd seriously consider consolidating the checking accounts, as the system can track the amount apportioned in the checking account for each fund without the need to keep two sets of checks, and two sets of bank statements/reconciliations. This also eliminates the need to have to move funds between accounting funds, as the Contributions module would properly create the transactions updating both funds, and you'd only have to make one deposit and not move money around. It would also properly indicate in the Fund 02 the income from contributions.

Frankly, this also eliminates one possible area that could cause issues for whomever is the bookkeeper/treasurer in future.
Neil Zampella

Using PC+ since 1999.

cmdouglas0330
Posts: 5
Joined: Wed May 27, 2020 5:13 pm

Re: Transferring Between Temp Restricted Accts

Post by cmdouglas0330 »

Fund 01 is for standard operating fund; where all contributions come in from donors; and I have the Contribution Funds as Donor Restricted as the Online course states...Fund 02 is the Building Fund and it has it's own separate Savings account. So in actuality, when the contributions come into the Main account and we then transfer (deposit) the building fund donations into the other Savings account which is separate from the Main Checking Account. We have 2 accounts and I want to show these actions in our reporting. The reason why we have the savings account is (to hold) the money for our building fund donations so that we can purchase a property in the future. So it seems like, I need to release said amount of funds from restrictions back to Unrestricted assets; then create a transaction transferring the money between asset accounts (from Fund 01/Checking to Fund 02/Building Saving), then create another transfer account within Fund 02 between Unrestricted to Restricted Fund accounts. I was thinking along these lines but I begin to get confused about the process so I reached out...I will try this now. Thank you NeilZ

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