User Support Forum

The church loaned one of our members money from the general fund bank account.
A check was written to that member from the general fund bank account.
We would like to show that money coming from that bank account but also as the member pays the money back we would like to show it going back into the general fund bank account.
Could you please assist me in the correct way to set this up.

If this is not enough information please let me know.

I would suggest that you create an Accounts Receivable line item. The original amount of the loan should be credited to the bank account and debited to the AR account. As the loan is paid off, you debit the bank account and credit the AR. This will show all changes on your monthly reports and a complete activity of the loan if you run the activity report on the AR account.

I use this same procedure when money is "loaned" to another fund within the church that is expected to be "paid back". It keeps the accounting simple and there is never a question as to how much remains to be paid back. (Of course, for the fund that is received the "loan", I do just the opposite procedure and have a Liability account set up.)

Hope this helps.