Account Adjustment

[GNBBC]

Good day.
Our balance sheet shows an inaccurate balance for our Nehemiah Project, which is one of our general operating asset accounts. The balance sheet shows, for example, -194,231.00, but the actual bank balance is $22,204.00. To make an adjustment, would I be correct in entering this transaction:

Debiting our Nehemiah Project general operating account (01-1185) $216,435.00 and Crediting the General Fund Balance account (01-3110) by the same amount?

Thank you.

[NeilZ]

Good day.
Our balance sheet shows an inaccurate balance for our Nehemiah Project, which is one of our general operating asset accounts. The balance sheet shows, for example, -194,231.00, but the actual bank balance is $22,204.00. To make an adjustment, would I be correct in entering this transaction:

Debiting our Nehemiah Project general operating account (01-1185) $216,435.00 and Crediting the General Fund Balance account (01-3110) by the same amount?

Thank you.

Um ... before you do anything, I'd find out why the system is showing such a negative balance.

[GNBBC]

Thanks, NeilZ. I will let the accountant know of your suggestion, as well as my supervisor.

[GNBBC]

Hi, Neil. While I do appreciate your suggestion that we find out what the problem is before making adjustments, in the process of finding the errors, I'd like for us to make sure we're not repeating the same mistakes. With that thought in mind, I have this question: When transferring funds from our general operating account (01-1110) to our Wells Fargo - Renovation account (01-1185), should this transaction be entered as the four-step entry so that each fund balances out?

But when transferring funds from an expense fund (Laymen's Ministry/02-5605) to our general operating account (Bank of America/01-1110), the four-step process would not be necessary? We would simply credit our general operating account and debit the expense fund?

I'm just trying to make sure we don't repeat any unknown mistakes as we try to find the solution(s) to our huge problem. Thanks again.

[NeilZ]

Hi, Neil. While I do appreciate your suggestion that we find out what the problem is before making adjustments, in the process of finding the errors, I'd like for us to make sure we're not repeating the same mistakes. With that thought in mind, I have this question: When transferring funds from our general operating account (01-1110) to our Wells Fargo - Renovation account (01-1185), should this transaction be entered as the four-step entry so that each fund balances out?

But when transferring funds from an expense fund (Laymen's Ministry/02-5605) to our general operating account (Bank of America/01-1110), the four-step process would not be necessary? We would simply credit our general operating account and debit the expense fund?

I'm just trying to make sure we don't repeat any unknown mistakes as we try to find the solution(s) to our huge problem. Thanks again.

When you're transferring funds between two asset accounts in the same fund, there is no need to do anything other than a standard debit/credit transaction entered through Funds Accounting. The system should maintain the differences. You can test this by doing a backup of the accounting database, run a Balance Sheet Report to verify what is in each asset account and in the net asset accounts, then enter the post the transaction. Run another Balance Sheet Report to verify that the funds moved as they should. If not, you can restore from the backup, but I suspect it will work.

As far as moving from one Accounting FUND (02) to your operating fund (01), you should always create the transfer account transaction as shown in the User Guide.

[GNBBC]

Good morning, and I hope you're having a terrific morning!

Neil, when you made reference to the "User Guide," were you making reference to the online training? Please bear with me; I'm trying to get a better understanding, sir, and I'm not going to stop trying. I appreciate your guidance. Thank you.

[NeilZ]

Good morning, and I hope you're having a terrific morning!

Neil, when you made reference to the "User Guide," were you making reference to the online training? Please bear with me; I'm trying to get a better understanding, sir, and I'm not going to stop trying. I appreciate your guidance. Thank you.

No, I'm talking about the Powerchurch User Guide or Reference Manual located as a PDF in the x:\Powerchurch\PCPLUS14\PCPLUS14.PDF or the printed manual.