Restricted funds - Neil Z ----Help!

[pessner]

I am still confused (or a little dense). I have a percentage of a contribution fund to be moved to restricted funds. This is what I received from you:

Now you could just set this up in Contributions.

1. Create a Contribution Fund that:
a) does not appear on Contributions Statements
b) is setup to point to a restricted income account
c) is setup for an Automatic Transfer of 10% of the Contribution Account used for Tithes and Offerings. This will automatically move 10% from the Tithes and Offerings Income Account into this Restricted Income Account when posting contributions to funds accounting. The total Contributions of tithes and offerings will still be reflected in Contributions, but when it gets to Funds Accounting, 10% will be skimmed off the top and show up in the Restricted Income.

When I set up the contribution to point to a restricted income account, I am assuming the credit account number field is the restricted income account number.

What account number should be in the debit account field? There is no cash being contributed.

I understand when we pay the agency, our check will debit the expense and credit the cash......I also understand we need to "Release Restricted Funds" when paying

[NeilZ]

I am still confused (or a little dense). I have a percentage of a contribution fund to be moved to restricted funds. This is what I received from you:

Now you could just set this up in Contributions.

1. Create a Contribution Fund that:
a) does not appear on Contributions Statements
b) is setup to point to a restricted income account
c) is setup for an Automatic Transfer of 10% of the Contribution Account used for Tithes and Offerings. This will automatically move 10% from the Tithes and Offerings Income Account into this Restricted Income Account when posting contributions to funds accounting. The total Contributions of tithes and offerings will still be reflected in Contributions, but when it gets to Funds Accounting, 10% will be skimmed off the top and show up in the Restricted Income.

When I set up the contribution to point to a restricted income account, I am assuming the credit account number field is the restricted income account number.

What account number should be in the debit account field? There is no cash being contributed.

I understand when we pay the agency, our check will debit the expense and credit the cash......I also understand we need to "Release Restricted Funds" when paying

Money IS being contributed. The original contribution is being split, so you need to show that split as cash.

Here's the scenario:

Regular Tithes & offerings is setup as Fund #100, which points to your BanK Account (debit) and your Tithes & Offering Income Account (credit). The Restricted Contribution Fund is setup as Fund #500, whish also points to your Bank Account (debit), and your Restricted Income account (credit). This fund is not used for anything other than this split.

The Contribution Fund is setup to send 10% to the restricted income account. So lets follow the money.

1. In Contributions, one Sunday you collected $1000 (a nice round number to use) in your normal Fund 100, Tithes and Offerings. This $1000.00 will appear in Contribution reports.

2. You then post Contributions to Funds Accounting. The system sees that you are splitting 10% to Fund #500, so it creates the Contribution Transaction as follows:

01-1110 Checking (Debit) $1000 (this is a combination from Contribution Fund 100 & 500)
01-4010 Tithes & Income (Credit) $900
01-4200 Restricted Income (Credit) $100

You have to show the bank account on that Contribution Fund so the system has the second half of the transaction.

Try this:

DO a full backup of the database. Setup the Contribution Funds as I laid out. Then enter a contribution of $1000.00. Post the Contributions to Funds Accounting. Then take a look at the Unposted Transaction and you'll see how it works.


The system when it creates the transaction takes a look through the posting funds to see what matches up and will total those into one transaction line.

So if you have a number of contribution funds for stuff like flowers, youth support, and so on, that are all funded from your main 01 fund, the system will total all those up and create one line to reflect the cash & checks going into the bank debit account, but you'll see three different lines for the income credit accounts if you split that up to easily track that income.

[pessner]

OK -I finally see what you are talking about. (I think!) Will give it a try - yesterday's contribution will post tomorrow.

Thank you SO much.....

[NeilZ]

OK -I finally see what you are talking about. (I think!) Will give it a try - yesterday's contribution will post tomorrow.

Thank you SO much.....

No problem .. let us know the results, which should be what you expect