User Support Forum

I am attempting to use PC for a school that we opened. I have some questions about the accounting setup. We have not used any software to this point and I'm just now getting into doing data entry for the past two year.

In our COA I have a liability account setup for application fees (2710-003). Last year, we had to refund application fees because we did not open.

1. Do I process the refund checks through the same liability account or do I need to setup a different type
of account?
2. Should this liability account close to another type of account?

When I have to refund application fees (we call them registration fees), I prefer to do a contra income entry. Since I run the preschool's books through accts receivable, I create an invoice to reverse the liability and reduce the checking account.

In your situation, you could reverse the liability. The liability would be at zero at year's end, and closing it out to your main church/general fund should suffice. My preschool runs under it's own fund, so the liability would close out to it at year's end.