Reversing a Contribution

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FBCBurnsville
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Joined: Tue Apr 19, 2022 11:49 am

Reversing a Contribution

Post by FBCBurnsville »

Recently, I entered a contribution that contained multiple donations totaling $400. After I entered the transaction, I received a stop payment notice on $50 of the contribution leaving the new contribution total to be $350. How is the best way to correct this transaction?

NeilZ
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Re: Reversing a Contribution

Post by NeilZ »

FBCBurnsville wrote:
Tue Apr 19, 2022 11:59 am
Recently, I entered a contribution that contained multiple donations totaling $400. After I entered the transaction, I received a stop payment notice on $50 of the contribution leaving the new contribution total to be $350. How is the best way to correct this transaction?
1. Post Contributions to make sure that the unposted queue is clear.
2. Go into Contributions and reverse the donation there
3. Post Contributions to Funds Accounting

When you post Funds Accounting the system will update the proper accounts. I'm assuming the 'stop payment' came after you had deposited the original set of contributions so the bank did the adjustment there.

However, if the bank charged you a fee due to the stop payment, you need to account for the fee by creating either a manual check in Accounts Payable, or entering a transaction directly in Funds Accounting. I do the AP route as it show that the bank was paid as it imposed the fee.
Neil Zampella

Using PC+ since 1999.

FBCBurnsville
Posts: 4
Joined: Tue Apr 19, 2022 11:49 am

Re: Reversing a Contribution

Post by FBCBurnsville »

Thank you. That's what I was thinking I needed to do, but when I do that, then how do I clear that out when I do my bank reconciliation? (I'm just talking about the initial $50. I'll deal with the stop payment charge later - if there is one.)

NeilZ
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Re: Reversing a Contribution

Post by NeilZ »

FBCBurnsville wrote:
Tue Apr 19, 2022 1:36 pm
Thank you. That's what I was thinking I needed to do, but when I do that, then how do I clear that out when I do my bank reconciliation? (I'm just talking about the initial $50. I'll deal with the stop payment charge later - if there is one.)
I suspect the bank will list the original deposit for the amount on the statement. Usually such stop payment actions happen after you're credited the full amount, the bank then debits the account for the amount of the check, and any fees they charge.

That said, if they deducted the amount before they credited your deposit, this procedure will still cover that.

When you reconcile, you'll see the original deposit from Contributions in the Deposits and other additions list at the top of the Reconcile window. The REVERSAL(once posted to Funds Accounting, and FA then posted) will appear in the Checks and other Subtractions list at the bottom. SELECT BOTH ITEMS!!

As I mentioned, the bank will probably list the fees on the same statement, so they should be accounted for BEFORE the reconciliation, that fee will appear in the bottom list.
Neil Zampella

Using PC+ since 1999.

NeilZ
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Re: Reversing a Contribution

Post by NeilZ »

Forgot to add ... the system will adjust the income, checking, and fund balance accounts automatically.
Neil Zampella

Using PC+ since 1999.

FBCBurnsville
Posts: 4
Joined: Tue Apr 19, 2022 11:49 am

Re: Reversing a Contribution

Post by FBCBurnsville »

OK. I'm following you, but I still have an issue in that the $50 that was stopped is part of a larger, single contribution of $350. So, in the Deposits and Other Additions section, I only have a $400 contribution showing, and in the Checks and Other Subtractions, there is only the reversal of $50. So I can't cancel them out that way because I have to clear the rest of the money. Should I go in and reverse the entire contribution and just start over with the correct amount? Sorry to be such a pest, but I'm relatively new at PowerChurch and only have a basic knowledge of accounting so sometimes I get stumped!

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
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Re: Reversing a Contribution

Post by NeilZ »

FBCBurnsville wrote:
Tue Apr 19, 2022 4:06 pm
OK. I'm following you, but I still have an issue in that the $50 that was stopped is part of a larger, single contribution of $350. So, in the Deposits and Other Additions section, I only have a $400 contribution showing, and in the Checks and Other Subtractions, there is only the reversal of $50. So I can't cancel them out that way because I have to clear the rest of the money. Should I go in and reverse the entire contribution and just start over with the correct amount? Sorry to be such a pest, but I'm relatively new at PowerChurch and only have a basic knowledge of accounting so sometimes I get stumped!
As I said ... I suspect the bank shows the $400 deposit ... so does Powerchurch. Clear that, the reversal in the bottom under SUBTRACTIONS, takes care of the $50 that was deducted later by the bank as part of the stop payment. The system will adjust income, checking, and fund balance to reflect the $50 deduction, leaving the $350.

Trust the system ...
Neil Zampella

Using PC+ since 1999.

FBCBurnsville
Posts: 4
Joined: Tue Apr 19, 2022 11:49 am

Re: Reversing a Contribution

Post by FBCBurnsville »

OK. Sometimes I'm a little slow on the uptake! But I think I follow you now. Thanks for your patience and your help!

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