Changing fund to temporarily restricted

[willsell]

We have had a scholarship fund setup for many years. We would like to change that fund so that we can apply releases and see what our remaining balance is. The scholarship fund has a separate bank account so we can get the current balance from the statement.
What are the steps to make this change?

[NeilZ]

We have had a scholarship fund setup for many years. We would like to change that fund so that we can apply releases and see what our remaining balance is. The scholarship fund has a separate bank account so we can get the current balance from the statement.
What are the steps to make this change?

As a separate bank account, its not as easy to create a temp restricted fund in your current operating fund. Normally, a temp restricted fund will release funds to the unrestricted net assets account which is normally attached to the main checking account.

I would set this up as a separate Accounting Fund, in this way you can use the separate checking account and maintain it completely separate from the main operations checking.

You would have to create a separate checking (asset) account, net assets account, and expense account for issuing funds.

For example, your operations Accounting Fund is normally set as 01, which is the Powerchurch default. Those accounts would look something like this:

01-1110-000 - Checking, 01-3110-000 - Unrestricted Net Assets, 01-5500-000 - some expense account

Your new Accounting Fund would use something like SF (scholarship Fund) and the accounts would look like this:

SF-1120-000 - SF Checking, SF-3120-000 - SF Unrestricted Net Assets, and SF-6610-000 - Scholarship Awards

When you write the check, you would be able to use the normal Accounts Payable if you want and handwrite the check, and use the Manual Checks function to enter it. Of course for the normal debit and credit entries, you would use the SF- fund account numbers (IE: SF-1120-000 for the Credit, and SF-6610-000 for the Debit)

Does this help?