Fund Transfers

[ccwebb]

I am not so pleased with my understanding and use of fund transfers. I have set up all of the transfer accounts and I think I know how to use them. However, I feel that the transfers distort/confuse the bottom numbers on the income and expense statement.

For example purposes let's say that all transactions but one have been entered for January 2007 into the General Fund 01. If we ran the income and expense statement at that time it would show $5,000 of income and $5,000 of expense and $0 of transfers. The bottom line of the report "Excess Income/Expenses" would show $0.

Now the church decides to give $5,000 of the general fund to the Building Fund 10. So the final entry for the month is to move $5k via the transfer accounts from the general fund to the building fund.

Now we run the income and expense statement for the general fund. The report shows $5,000 of income, $5,000 of expense, $5,000 transfer to fund 10 (a minus).

The bottom line of the report "Excess Income/Expenses" would show $-5000.

To me this looks like the church had a "loss" of $5,000 for the month and of course this minus number would carry thru all subsequent YTD numbers for the rest of the year.

Also, our casual user of this report also gets confused as they quickly run their finger to the bottom line to see how the church did for the month.

Am I missing it - or am I doing something wrong?

Charlie

[Jeff]

You are correct that the General Fund has a deficit of 5,000. But consolidated accross funds you are still at the 0 balance. If you ran a consolidated report you would also see 5000 going into the Building Fund. The transfer would net itself out and you would be back to the 0 balance. Take a look at the Income and Expense by Fund and it will show the bottom line for each fund and a consolidated total for all funds.