Question about Restricted Funds and Expense Line Items

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Pecks
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Joined: Tue Aug 07, 2018 9:34 pm

Question about Restricted Funds and Expense Line Items

Post by Pecks »

So my church has a restricted fund for Benevolence. We also have a budget line item to every quarter put money into this fund. I was wondering how to do this transaction in PowerChurch Plus? Right now, I was trying to do a debit from Unrestricted Assets Equity and a credit to the Benevolence Fund Equity, Then I made a debit from the Expense line item, and a credit to the income of the Benevolence Fund. This results in the restricted assets getting credited twice, and showing more than is actually in the account. How would I set this transaction such that the funds transfer from the unrestricted account into the restricted fund, while still showing the expense line item? I'm not sure how to go about doing this. I know this expense item isn't the same as the normal expense item since money is not actually leaving the fund, but I'm not sure how to show this information.

NeilZ
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Location: Dexter NM
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Re: Question about Restricted Funds and Expense Line Items

Post by NeilZ »

Pecks wrote:
Mon May 24, 2021 3:54 pm
So my church has a restricted fund for Benevolence. We also have a budget line item to every quarter put money into this fund. I was wondering how to do this transaction in PowerChurch Plus? Right now, I was trying to do a debit from Unrestricted Assets Equity and a credit to the Benevolence Fund Equity, Then I made a debit from the Expense line item, and a credit to the income of the Benevolence Fund. This results in the restricted assets getting credited twice, and showing more than is actually in the account. How would I set this transaction such that the funds transfer from the unrestricted account into the restricted fund, while still showing the expense line item? I'm not sure how to go about doing this. I know this expense item isn't the same as the normal expense item since money is not actually leaving the fund, but I'm not sure how to show this information.
First off ... are the accounts in the same Accounting Fund? Was the Benevolence Fund setup using the Maintain List of Donor Restrictions?

I'm going to assume the first. You do not need to do any transaction on the actual net assets/equity accounts. That's your problem. Just debit the expense and credit the income. In reality you are moving funds from the unrestricted net assets and putting it in the restricted net asset account.

The reason I ask about the Maintain List of Donor Restrictions is that when you do write a check against that Restricted Fund, you would release the funds when you create the check in Accounts Payable, and you just use the standard checking account, and normal expense accounts.
Neil Zampella

Using PC+ since 1999.

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