Purchase Orders or Encumbrances

[Steve4bz]

We have several expenses coming due later in the year. We want to ensure that we don't forget or more importantly ensure that we have the cash in the bank to pay them. Is there anything like a purchase order in PowerChurch that would allow us to encumber money for future expenses?

[JohnDMeyers]

PowerChurch works on a cash basis (as opposed to accrual basis). Transactions are recorded as they occur.

One way to remember to set aside money is to create sub-accounts in your checking or savings accounts and move money into these sub-accounts. That way, you can see the designations on your reports.

For example:
01-1110-000 checking $5,488
01-1110-001 future #1 $1,200
01-1110-002 future #2 $1,050

And then, don't overspend the $5,488 in your checking account designation for regular bills, even though there is really $7,738 in checking.

[beas]

Just an observation/suggestion: unless you're needing to use the money currently in your checking account as a buffer until you need to use the funds, you could transfer the funds that you'll need later to a savings account and then transfer it back when you need it. I have done this in the past with online banking. Then you don't have to keep calculating how much you have left in checking that is actually available.