Closing to separate Funds

RLM · Post by **RLM** » Tue Feb 05, 2008 8:34 pm

I have assumed the treasurers responsibility for the church. The church has 9 separate checking accounts which I have created a Fund for corresponding to the separate checking accounts. I will merge several of the other funds with Fund (01) after about 6mos or less depending on my comfort level with Fund Accounting at that time. Leaving only the (2) Building Fund and three of the other Funds.

My question is this: When I create the new Funds - (01) General (02) Building (03) Missions, etc. I am asked what account I want these funds to close to. I think that I want them all to close to Fund (01) because that is where all of the fixed assets are located and it seems to me that it shoud all close to the same equity account because realistically it is one entity. I established the Funds to make the reports easier to manage & read. Am I correct in this, or should I close to the equity account of each respective Fund?

Post by **Jeff** » Wed Feb 06, 2008 9:05 am

Income, Expense, and Transfer accounts can only close to equity accounts in their same fund. For example a fund 03 expense account can only close to a fund 03 equity account.

You can use the same equity account number (ie "3110-000") in all the funds so it will show only one equity account line when you run a consolidated balance sheet. What happens is the 01-3110-000, 02-3110-00, 03-3110-000, etc are consolidated together because they have the same major and sub account numbers.

Let me know if I have missed the point of what you are trying to accomplish.

RLM · Post by **RLM** » Wed Feb 06, 2008 11:06 am

Thank you so much Jeff...