User Support Forum

I was reading the PC+ instruction book and it mentioned that when adding a new donor restricted account, you should (optionally) have the expense account number ready to plug in when you go through the process of opening the account. How is the expense account affected when you make an entry in a donor restricted account?

Thanks for your help.

Lydia:

It's not. In fact, the entering of the expense account is optional. It's included in the wizard as a convenience, in case you want to create the expense account at the same time you create the restriction. Likewise, you can use an asset account to record restricted money that is "spent" on purchasing an asset. ("Spent" is in quotes, because the purchase of an asset is an outflow of cash, but it is not considered and "expense").

The equation for the donor restriction, as noted in the previous discussion about the "Changes in Equity" report has to do with the restricted income accounts, and the restricted equity accounts. Expense accounts close to the "unrestricted equity accounts", and are not restricted in the sense of donor-restricted income.

There is no section on the income-and-expense statement for "Temporarily Restricted Expenses". It doesn't exist.