User Support Forum

Earlier in 2024, income and expense accounts were setup to for a building painting project.
The goal dollar amount was collected, and materials were expensed to the appropriate account as the project progressed. The project is now completed. I now realize that this should have been set up as a restricted donor account for the income and there should have been a release fund too. Can that be corrected now even after all the expenses have been posted? I am most concerned with the income showing up in the unrestricted section on the income and expense statement. I would like for it to appear in the restricted income section.

Yes, you can make this change after the fact.

First, you will want to change the Income account number on the Maintain Chart of Accounts screen found under Accounting > Fund Accounting > Setup. Use the Locate button to bring up the account in question, then change the account number. By default, Temporarily Restricted income accounts fall in the 4200 range.

You can then go to Accounting > Fund Accounting > Setup and choose Maintain List of Donor Restrictions. Click the Add button to add the new restriction. It will ask for an existing equity account (or add a new one - 3200 number range), income account (4200 number range), the release account (4800 number range), and optionally, the expense account.

Once you have set all of that up, the money that had come into that income account thus far will be showing in the new restricted equity account. The last step will be to enter a transaction that releases the money from restriction. If you want it to show up in each month that the money was spent, you can enter separate transactions each month. In Accounting > Fund Accounting > Enter Transactions, the default checking account will be added in the transaction automatically, but you can click the Delete Line button, then click the Release Restricted Funds button. Choose the new restriction, enter the amount that was released, and when the transaction is complete, click Save.

Thank You for the prompt and very helpful response. I made the changes to the accounts as you suggested and all is good.