Fund accounting, fund #1 checking balance off

[WellsAG]

Our checking / savings accounts balance with the bank statement. When I go the the fund account balance report, the #1 fund checking account balance is way off?. How do I correct it?

Thanks
Larry

[NeilZ]

Our checking / savings accounts balance with the bank statement. When I go the the fund account balance report, the #1 fund checking account balance is way off?. How do I correct it?

Thanks
Larry

You don't. The Fund Balance report is what the system shows as of a certain date. It includes checks and deposits that have been written but had not cleared the bank. So you're going to have a difference between what the bank shows as of say Nov 30th, and what the system says as of Nov 30th.

The bank has no idea about checks still being processed by the vendor, or deposits entered into the system on the 30th, and dropped in the overnight bank deposit safe.

As long as when you reconcile your accounts, they show a 'to balance' of 0.00, you're matching up with the bank.

[WellsAG]

Looking back, it seems the numbers being off was caused by the building fund account. As bills were being paid, the fund balance was not being reducing as bills were being to thru asset accounts. Not sure how to fix so the fund accounts are accurate. The main check book and savings accounts are spot on with the bank.
Thanks
Larry

[NeilZ]

Looking back, it seems the numbers being off was caused by the building fund account. As bills were being paid, the fund balance was not being reducing as bills were being to thru asset accounts. Not sure how to fix so the fund accounts are accurate. The main check book and savings accounts are spot on with the bank.
Thanks
Larry

OK .. in that case you need to move the funds from the building fund, to the unrestricted fund balance. I'm assuming that the Building Fund is an entirely separate Accounting Fund (IE: Operating is 01, and building is 10, something like that).

However, when you wrote checks, you wrote directly from Operating,(01-1110-000) rather than the Building (10-1110-000) which drained the unrestricted fund balance in 01, but obviously did not touch the unrestricted fund balance in 10.

So you need to transfer the funds from the 10-3110-00 to 01-3110-000 (default unrestricted fund balance account numbers)
I'd do a backup of the accounting files using the Powerchurch backup utility before you try any of this.

You can do it the quick way by entering a transaction in Fund Accounting CREDITING the 01-3110-000 the amount that should have come out of the building fund, and DEBITING the 10-3110-000. This avoids using the transfer account, or you can use a transfer account as shown in the Powerchurch manual.

Either one will work, the second gives a better audit trail.

If your funds are not setup that way, please let us know.

[WellsAG]

Did a journal report on 04 building fund .
Checks are from the 04-1110 bank account and most of them going to 04-1602 building improvements account (asset acct)

Thanks
Larry

[NeilZ]

Did a journal report on 04 building fund .
Checks are from the 04-1110 bank account and most of them going to 04-1602 building improvements account (asset acct)

Thanks
Larry

OK ... I trust that you DEBIT the Building asset account and CREDIT the bank account? That said, If the checks are coming out of the 04 Accounting Fund, the 01 should not be affected. EVEN if, as it appears, they use the same checking account. This could also explain why you think the 01 fund balance is incorrect from the bank account ... you have funds tied up in 04 too.