Building Fund Contribution

[CoveBaptist]

Surely someone has an idea - I am really lost here! You guys have always come through for me! We recently established a "Building Fund". These funds will be placed in an existing money market account with existing funds in order to get a higher rate. The proposed plan is to deposit the funds in the regular checking account and track them so reports reflect the regular operating funds and the building fund money held within the checking account. When an adequate amount is accumulated, these funds would be transferred to the money market account. I am totally lost as to how to set this up and make it work. Will using a sub-account in my checking account (01-1110-000) work? If so, do I have to change the existing account to a group account and add two detail accounts? Do I do the same for my Money Market which is in Fund 02? Do I set up additional Transfer Accounts to handle the transfers out and in when I get to that point? I already have transfer accounts that I was using to transfer funds into the money market account. Will those have to be altered as far as group and detail accounts? Or am I totally off track? Thank you for any assistance!

[Al]

If your Operating Fund is 01, consider creating a second fund - Building Fund 02.

New accounts can then be created. Then, money coming into the Building Fund can be deposited to 02-1110-000 (different fund but same bank account). The income account can be shown as 02-4xxxx- (where x stands for some digit that matches your chart of accounts) so that each deposit has a debit to 02-1110-000 and a credit to 02-4xxx-.

Then, when you move money to the Money Market account, credit 02-1110-000 and debit another new account Money Market Account 02-1xxxx- (another asset account).

If you already have a Money Market account in Operating Fund 01, you can just modify the account in Chart of Accounts to include the new Building Fund.

We had a similar situation, but ended up splitting our Building Fund into Maintenance & Improvement Fund and Capital Reserve Fund.

Al

[JohnDMeyers]

Just to add a note.

If you create a sub-account on your checking account, PowerChurch recognizes this as one physical bank account.

01-1110-000 and 01-1110-001 will reconcile as one account.

If your money-market money is a separate physical account, you will need to create a new major account number (1112, for example) in your chart of accounts.

[CoveBaptist]

Thank you both. I currently have the Money Market as Fund 02. So I think I will set up a sub-account for the checking account in Fund 01 and the Money Market in Fund 02. I will deposit the funds into the checking sub-account and when I transfer to the Money Market will transfer to the Money Market Sub-account. Do I need separate transfer in and transfer out accounts for the sub-account? If you see a other problems with this, please let me know. Thanks again!

[JohnDMeyers]

Creating a parallel set of sub-accounts for transfers will make things easier to follow.

Also, if you group your accounts / sub-accounts as you suggested earlier, the reports will be easy to read:

01-1110-000 CHECKING (Group level 4)
01-1110-101 General Checking (Detail level 5)
01-1110-102 Money Market Transfers (Detail level 5)

01-9100-000 TRANSFER (Group level 4)
01-9100-101 General Checking Transfers (detail level 5)
01-9100-102 Money Market Transfers (detail level 5)