User Support Forum

We've been using the Contribution module for several years. But I've been struggling with setting up our accounting module. We've been using the Contribution module for several years. We are using just one General Fund (01) for all accounts. I think most things are set up correctly, but I am not at all confident about how to record the following scenario:
We have a restricted account that is designed to pay a recurring expense. However, the donations are not enough to cover the amount of the expense the balance of which must then come from unrestricted funds.
Equity Acct. 01-3210
Income Acct. 01-4210
Expense Acct. 01-6110
Release Acct. 01-4810
If there is $300 in the equity account and we need to pay out $600 to meet our obligation, how do I record the transaction?
Additionally, we have numerous restricted accounts and because there is a considerable amount, the monies are held in a separate account. Before setting up PC+ accounting module we deposited all funds into our main checking account and then wrote a check for the total amount that should be transferred to the restricted account from each week's donations. We would make withdrawals from that restricted account and transfer back to our central checking account to pay all bills. What is the best way to handle these transfers?
Central Checking Acct. 01-1110
Restricted Acct 01-1210
Thanks for your help!

Several ways to handle this. It depends on what you want to show.

Every payment is made the same. You take money out of checking, and showing the expense in 01-6110.
CR 01-1110-000
DB 01-6110-000

In addition, each time you release money from its restriction toward this payment you do this:
DB 01-4810-000
CR 01-4999-000

Once the money is "used up" from the restriction, you can continue to the first transaction, and not do the second one.

That will, in effect, take money out of your general fund and use it toward the expense. (Remember, it's the donation that is restricted, not the expense).

If you want to know how much money was used from the General Fund toward this expense, you could set up a sub-account in the expense line item (I usually setup a Group Account, as well):
GROUP 01-6110-000 EXPENSE
Detail 01-6110-101 expense from restriction
Detail 01-6110-102 expense from general fund

and make payments accordingly. (use -101 when restricted funds are used, and -102 otherwise)

--- or ----
you could move funds from the General Fund into the restriction:
DB 01-4110-000 General Income
CR 01-4210-000 Restricted Income

and make all payments as you are doing.

It depends on how you want to do it.

As far as making transfers, it is pretty straight forward:

CR 01-1110-000 out of checking
DB 01-1210-000 into restricted account

------

DB 01-1110-000 into checking
CR 01-1210-000 out of restricted account

Thank you so much for your response! Just the info I needed. I'm making entries now from our previous accounting year so we can have an "apples to apples" comparison in our current and prior year YTD statements.

Thanks again!

Marie