Would like to Set up Building & Property as "Restri

[hajian]

I'm trying to set up my chart of accounts. I entered most of my information in, but I want don't want the value of our building & property to show up as "unrestricted" in the balance sheet equity. As it is, the building & property value shows up with the rest of our unrestricted funds. Is there a way to show the value of the building & property in another catagory of equity? When I look at my unrestricted funds I want to be able to see the funds we have for spending. Thank you.

[Jeff]

I belive your building & property would fall into the unrestricted category unless you have a donor restriction that specifies that it cannot be sold. If you do, I would talk to an accountant about the correct way to show that restriction on your books.

But you can create another detail equity account in the unrestricted group in your chart of accounts. In this equity account you would show your current equity in your building. If you have a mortgage on your building, you will have to calculate this amount. Also there is no way to automatically adjust this account. You would want to look at this account at least yearly and post a correcting entry to rebalance it. But you could set up your equity section to look like this:

Code: Select all

Equity
   Unrestricted Equity
      Unrestricted Cash              $.XX
      Plant, Property & Equipment     .XX
      Subtotal Unrestricted Equity    .XX
   Restricted Equity
      Temporarily Restricted 
      etc.

[hajian]

That's exactly what I will do - create a detail equity account. I assume I can do that after I finish with the accounting setup, or would I have to do all that before I finish the "Edit and Finish Accounting Setup"?

[Jeff]

You will have add the property equity account in Maintain Chart of Accounts after completing the accounting setup assistant. You will then do a journal transaction to move the correct amount out of the unresticted equity account into the property equity account.

[hajian]

Excellent! I knew there had to be a way... I just didn't know the way! I do now. I have been using another accounting program for the past 8 years (or more) and I am determined to make the switch (even though there will be a learning curve).