User Support Forum

We are setting up our Chart of Accounts with the PowerChurch software and want to take advantage of the Fund accounting ability.

We have only one checking account bewteen our Operating Fund and our Outreach Fund.

When we receive contributions for the Outreach Fund, using the Contributions module interface we would

Dr. Operating Fund Checking Acct
Cr. Outreach Fund - Inn from the Cold Income Acct

Do we need to set up Interfund Balance Sheet account and make a manual journal entry to record the interfund balances? see example below.
Dr. Outreach Fund InterFund Receivable
Cr. Operating Fund - Interfund Payable

Thanks,
John

You will greatly benefit by having that same checking account used in each of your funds, rather than just the operating fund.

Since the rest of the account number is the same (except the first two digits) PowerChurch Plus will know that it is the same physical account at the bank and consolidate it across multiple funds.

When you receive money from contributions, it would look like:
02-1110-000 checking (debit) 1000.00
02-4310-000 contribution income (credit) 1000.00

When you write a check that uses this fund's money, it would look like:
02-1110-000 checking (credit) 500.00
02-5810-000 expense (debit) 500.00

This way, when you run a Balance Sheet just for Fund 02, it will show you the actual available balance in the checking account that belongs to Fund 02.

The idea is to have all related debits and credits occurring in the same fund, so that the Accounting Fund can self-balance as intended.

Thank you! Will set up our accounts as suggested.