User Support Forum

I have a bit of confusion, and this is really an accounting question, but I don't know where else to ask it. We have an account, default I think, transfer to general fund 4620. I understand the principle but do not understand how to use this account. Could someone give me a primer to the entries needed? I assume there are four entries, two in fund 8 (mission trips) for example and two in fund 1 (general). What would these look like to give proper accounting?

Let's say there's $100 in your missions trip checking account that you want to transfer to your general fund checking account. Assuming that you are using the same checking account for both funds the accounting entry to accomplish this transfer would look as follows:

Debit 08-4620 $100.00
Credit 08-1110 $100.00
Debit 01-1110 $100.00
Credit 01-4620 $100.00

You don't mention what version of PC+ you are using. If you are using version 9 or 10 there are transfer accounts in the 9000 series that can be used to record transfers from one fund to another. Using the 9000 series accounts to record transfers is preferred because doing so prevents showing a negative amount in an income account like you'll see in the missions trip 4620 account in the example above.

Thank you Matt. I was not doing quite right. I am using version 10, but my accounts go only to 6030. Can you assist me with these 9000 numbers?

First, you need to go into "File" at top left of screen, "Preferences", "Accounting Setup", "Fund Accounting", and make sure the box for "Use transfer accounts" is checked.


Mine look like this:

1. TRANSFER ACCOUNTS 9000 Group CR Transfer
4. Transfer to Other Funds 9100 Detail CR Transfer
4. Transfer from Other Funds 9200 Detail CR Transfer

You can set them up under the Fund Accounting, "Maintain Chart of Accounts" and add all the accounts you need to use transfers with.

Hope that helps!

Thank you Deb. that is what one gets when a preacher instead of an accountant has to hand details. and I had an accountant help me set this up.

You will also need to change the Expenses range under Account Number Ranges to a maximum of 8999

Thanks Tom, I figured that out when I got a popup warning.

matt wrote:If you are using version 9 or 10 there are transfer accounts in the 9000 series that can be used to record transfers from one fund to another. Using the 9000 series accounts to record transfers is preferred because doing so prevents showing a negative amount in an income account ....

I'm using version 10.4. Can you please give an example of exactly how one would use the transfer accounts in the 9000 series? For example, if I want to transfer $100.00 from an asset account in Fund 03 to deposit in the Fund 01 checking account (1-1110-000), what would the transaction look like?

(Please forgive me if this is already documented in the manual. It is at the office and I won't be back there until after Christmas. I've tried the online help and I've tried searching the forum - but ineffectively.)

Edit: Also, how would the Chart of Accounts be set up for these accounts in each fund?

If you used the Accounting Setup Assistant to set up your chart of Accounts PC+ will have set up Transfer To accounts in the 9000 series and Transfer From accounts in the 9500 series to use in making transfers between funds. In your example, you would input an entry such as the following to transfer cash from Fund 03 to Fund 01:

Debit 03-9010-000 $100.00
Credit 03-1110-000 $100.00
Debit 01-1110-000 $100.00
Credit 01-9510-000 $100.00

Matt,

Thank you for your quick and helpful answer.

I don't seem to "get" the function of the transfer to/from accounts in each fund and would like to understand the rationale behind the transaction you gave me.

Why would I not simply do this:

CR 03-1110-000 $100.00
DB 01-1110-000 $100.00

Using the 9000 series transfer accounts, I understand that I would want to decrease an account in the fund I am moving $$ out of, but why would I use a "transfer to" account in that fund (DB 03-9010-000)?

Similarly, I understand increasing an account in the fund I am moving $$ into, but why use a "transfer from" account in the fund that is receiving the $$ (CR 01-9510-000)?

Why is it that in both funds (01 and 03) the description of those accounts say "Transfer to/from Fund 01"? I would expect the accounts in fund 03 to say "Transfer to/from Fund 03."

Thanks for any light you can shed on this matter.

(P.S. This is a revision of my previous posting in response to Matt's.]

In your example if you credit the 03 fund and debit the 01 fund. It will reduce the checking account in Fund 03 and increase the account in 01. But each fund is then going to be out of balance. (the debits in fund 03 will not match the credits in fund 03, same thing in fund 01) If you then look at a balance sheet or trial balance for just fund 03, it will be out of balance.

That is why you need to use transfer accounts to move money between funds. You want each transaction to be balanced within each accounting fund. PowerChurch will check and give you a warning if the debits and credits in each fund are not balanced. It is just a warning, it will let you post the transaction anyway.

THANK YOU, Jeff! That makes so much sense! Now, if I can only remember to apply that principle to the next beginner's question that I run into!

(My signature says it all....)

Hi,
I have a similar problem in transferring funds, however, my pastor would like me to transfer funds out of our "Local Missions Fund" (income) which is 02-4141-800 and transfer these funds to our Women's Ministries Fund and a couple of other funds that we have.
I think it would be easier if I transferred "Local Missions" income to our general missions income #02-4136 first then transferred the money from our Missions Fund to the other various funds using the 9000 numbers.
What type of entry would I make to transfer the income from 02-4141-800 to 02-4136 and will this cause any problems later down the road?
Thank you,
Dee

I have questions along a similar line.... only I am dealing with two checking accounts (01) GEN FUND-1110 checking account which is tied to my (09) Camp Fund that uses the same checking account-1110 & (05) G-Time Fellowship Fund checking account-1150.

Fund (05) has written a check to Fund (01) for $35.00 for a youth camp subsidy. The check was DEPOSITED into Fund (01) but I don't want it to show up as 'income', because it is really only a transfer between the accounts. Someone other than me manages the checkbook and I merely manage the transactions in PowerChurch in order to keep an accurate accounting of all church related transactions.

Here is the entry that I made, please offer suggestions if I have done this incorrectly..

Debit 05-9090-000 $35.00 Transfer TO Camp Fund
Credit 05-1150-000 $35.00 Transfer TO Camp Fund
Debit 09-1110-000 $35.00 Transfer FROM GEN CHKG
Credit 09-9510-000 $35.00 Transfer FROM GEN CHKG

I hope that I am being clear about this .....

I have a question on this as well. We have v 10.4 and have our transfer accounts all set up as 9000. General Fund is 01, Mission 02, Designated Funds (anything not budgeted) 03. I have transferred money from one fund to another before using 9000 with no problems, but now when I try to post it tells me that account 03-9000 and 02-9000 are in the wrong category. Can someone tell me what that means? I might have changed something in my accounting setup and don't realize it. Here's how I tried to do it, and have done so successfully in the past:

03-3002-070 transfer to missions debit 200.00
03-9000 transfer to missions credit 200.00
02-6900-001 transferred from special gifts credit 200.00
02-9000 transferred from special gifts debit 200.00