Vanco Process Processing Fee

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LQ Helper
Posts: 32
Joined: Fri Jul 15, 2016 6:48 pm

Vanco Process Processing Fee

Post by LQ Helper »

We have been using Vanco successfully since Jan of this year. My dilemma now is that I have just downloaded my first Vanco contribution with a donor offsetting processing fee. I don't have a fund set up for that yet so I don't want to post the donation until I do. I'm not sure how to handle this. Should I set up a restricted fund for processing fees or do I set up a fund and post it directly to the processing fee expense?
Thanks

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: Vanco Process Processing Fee

Post by NeilZ »

LQ Helper wrote:We have been using Vanco successfully since Jan of this year. My dilemma now is that I have just downloaded my first Vanco contribution with a donor offsetting processing fee. I don't have a fund set up for that yet so I don't want to post the donation until I do. I'm not sure how to handle this. Should I set up a restricted fund for processing fees or do I set up a fund and post it directly to the processing fee expense?
Thanks
You should read through this Knowledge Base article on Vanco integration.

https://www.powerchurch.com/support/444 ... ntegration

Note in Step 3 as listed it asks for an expense account to track the fees. If you don't have an expense account setup for that you should do so. It makes NO mention of any use of a restricted account, nor should you create any such account for this use.
Neil Zampella

Using PC+ since 1999.

LQ Helper
Posts: 32
Joined: Fri Jul 15, 2016 6:48 pm

Re: Vanco Process Processing Fee

Post by LQ Helper »

Maybe I didn't explain it correctly. I have done step 3 but that isn't really what I want to know. When a donor chooses to offset some of the porcessing fees and it is posted through the contribution module from Vanco, how should I account for the processing fee the donor has agreed to offset. When it comes down from Vanco it requires a fund # so the processing fee is to be credited to.
This is how it comes

20 Vanco Processing Fee .28 (I set this up so it would have someplace to post)
150 Building 5.00
260 Missions 15.00
Envelope Total 20.28

How do I handle the Vanco Processing Fee so the donor gets the full amount of the contribution and it also is credited to the expense account while showing up as a contribution since that is basically what it is. That was the reason for the question. Should it be a restricted fund and then I can release it to the expense account or is there a better way to handle it?

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: Vanco Process Processing Fee

Post by NeilZ »

LQ Helper wrote:Maybe I didn't explain it correctly. I have done step 3 but that isn't really what I want to know. When a donor chooses to offset some of the porcessing fees and it is posted through the contribution module from Vanco, how should I account for the processing fee the donor has agreed to offset. When it comes down from Vanco it requires a fund # so the processing fee is to be credited to.
This is how it comes

20 Vanco Processing Fee .28 (I set this up so it would have someplace to post)
150 Building 5.00
260 Missions 15.00
Envelope Total 20.28

How do I handle the Vanco Processing Fee so the donor gets the full amount of the contribution and it also is credited to the expense account while showing up as a contribution since that is basically what it is. That was the reason for the question. Should it be a restricted fund and then I can release it to the expense account or is there a better way to handle it?
OK ... I see what you're saying. Since the processing fee comes in as an expense, and you're showing that somewhere (I assume), I'd have the 'fee offset' just go to regular Tithes & Offerings.

I'm not sure what you mean by 'transfer to expense' . If you mean you're putting funds back into by CREDITING the expense account, you shouldn't be doing that because then you're not reflecting the true costs of using the Vanco system.

You could create a separate unrestricted income account for these fees also, but they should not be 'restricted', as the expense is basically the 'price for doing business'.
Neil Zampella

Using PC+ since 1999.

LQ Helper
Posts: 32
Joined: Fri Jul 15, 2016 6:48 pm

Re: Vanco Process Processing Fee

Post by LQ Helper »

Got it. Thanks so much. You all make my life so much easier.

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: Vanco Process Processing Fee

Post by NeilZ »

LQ Helper wrote:Got it. Thanks so much. You all make my life so much easier.
Trust me .. my suggestions have been tested through trial and error, which is why I always suggest do a backup of the accounting files before you test anything. In this case, you should also include the Contribution files.
Neil Zampella

Using PC+ since 1999.

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