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Prior Year Contributions Used as Income In Current Year
Posted: Fri Feb 04, 2022 6:32 pm
by tegoldbach
Our fiscal year ends in January 2022. I am in the process of closing the month and year. During 2021 we had a Donor Challenge for people to donate funds as contributions in 2021 that will be used as income in 2022. The funds were recognized as income in 2021 in a separate income account line. How do I "transfer" the money to 2022 so that it can be used for expenses without showing it as contributions/income again?
Re: Prior Year Contributions Used as Income In Current Year
Posted: Fri Feb 04, 2022 10:17 pm
by NeilZ
tegoldbach wrote: ↑Fri Feb 04, 2022 6:32 pm
Our fiscal year ends in January 2022. I am in the process of closing the month and year. During 2021 we had a Donor Challenge for people to donate funds as contributions in 2021 that will be used as income in 2022. The funds were recognized as income in 2021 in a separate income account line. How do I "transfer" the money to 2022 so that it can be used for expenses without showing it as contributions/income again?
If you created a temporary restricted account and put all those funds there, you could release them as needed. It wouldn't show as income, but would show as released for use. What I would do is
1. Create a temp restricted account using the
Maintain Donor Restrictions function. You would create a net asset account (3000 level), and use the existing Income account you created.
2> then move the funds from the unrestricted net assets account to the temp restricted fund account using the
Enter Transactions function of funds accounting.
Then when you purchase items you would release the funds from the temp restricted account.