User Support Forum

I want to move $826.00 from our general fund into a temporarily restricted fund (Special Projects Fund).

01-3230-101 = Special Projects Fund (Net Assets)

01-4230-101 = Special Projects Fund (Income)
01-4830-101 = Special Projects Fund (Income)

01-6410-000 = Special Projects Fund (Expense)

I think I have one Special Projects Fund (Income) too many in my chart of accounts?

I am not sure if I need only two transaction lines or four.

I am thinking I would just do this:
01-4230-101 $826.00 Debit
01-4030-000 $826.00 Credit

In this way, I was thinking it would increase our Net Assets (Temporarily Restricted) on our Balance Sheet.

Can anyone help me understand if this is correct?

Susan

You have the correct number of accounts created. Make sure they all close correctly:
4030-101 closes to 3110-000 (or whatever your unrestricted equity account is)
4230-101 closes to 3230-101
4830-101 closes to 3230-101 (I would call this "Special Fund Release")
4999-000 closes to 3110-000 (this is the "general release" income account)
6140-000 closes to 3110-000

I am thinking I would just do this:
01-4230-101 $826.00 Debit
01-4030-000 $826.00 Credit

The above would be incorrect if you want to move income from 4030 (unrestricted) to 4230 (temp restricted).

It should be this way:
01-4230-101 $826.00 Credit
01-4030-000 $826.00 Debit

Your equity accounts will automatically update once you post the above transaction.

To remove the restriction, do this:
01-4830-101 $826.00 Debit
01-4999-000 $826.00 Credit

Thank-you, John. I checked all my "closes to" detail and they were all correct. I made the entry as you directed and it worked! I will print this response and put it with my other "wisdom from John" files!
Susan

Yea! It's good to know I get 'em right, once-in-a-while!