User Support Forum

We have two Funds 01 and 02 each with their own bank account.

Fund 01 is the general fund and Fund 02 is our Trustees fund.

Within the Trustees’ Fund 02 there is an investment account that releases $2000 per year into two restricted accounts located in Fund 01. This transfer to the General Fund 01 is to be split equally between two temporary restricted funds in Fund 01. (Sunday School and Choir)

To move the $2000 from 02 to 01 the bank requires us to issue a cheque in order to transfer the $2000 between the two bank accounts. We don’t have online banking.

I have done the following:

Fund 02:

DR (Bank Account) #02-1210-000 $2000.00
CR (Investment Account) # 02-1320-000 $2000 .00

Issued a cheque from Fund 02
CR (Bank Account) #02-1210-000 $2000.00
DR(Transfer to Fund 01) # 02-9010-000 $2000 .00

DR (Release Account) #02-4950-501 $2000.00
CR (Release from Restriction) #02-4999-000 $2000.00


Fund 01:

The two temp restricted accounts in Fund 01 are:

Sunday School
Income Account 01-4235-107
Release Account 01-4835-107

Choirs
Income Account 01-4240-108
Release Account 01-4840-108

Question:

How do I show the transfer of the $2000.00 from Fund 02 to the two Fund 01 temporary restricted funds without affecting the income?

I don't think you can. It will be shown as a double income.

Income can only be shown as it comes into your organization. Once it is there, and you move it around, you want to show it as transfers.

Also, once you release the restriction in Fund 02, you have honored the restriction. You don't need to re-restrict it in Fund 01.

I would suggest setting up the Fund 01 accounts as assets, and receive the money from Fund 02 like this:
DB 01-1310-000 Choir
CR 01-9010-000 transfer from Fund 02

DB 01-1320-000 Sunday school
CR 01-9010-000 transfer from Fund 02

Then, when you spend the money for Choir, for example:
CR 01-1310-000 Choir
DB 01-1110-000 checking
and
CR 01-1110-000 checking
DB 01-5580-000 expense

I would suggest reading the Power Church HELP article on setting up transfer accounts.
It would give the recommended accounts and process.
-Robert