Insurance Check

[jordan2k510]

Recently our church van caught on fire. Total loss. Insurance sent a check. This van was purchased long before Powerchurch was used and had never been entered as an asset. What is the other side of the entry for the check? Db checking and CR ???

[Matt]

In this situation I would recommend that you set up a income account called "Van Insurance Settlement" and post the credit there.

[jordan2k510]

Thanks.
Should it close to a specific van equity account or just unrestricted equity?

[JohnDMeyers]

Probably unrestricted.

There clearly is no "donor restriction" placed on the insurance check. However, the church may want to restrict its use, and one way to track it is by using the restriction mechanism in PowerChurch.

An easier way, and what I would do, is to create a subaccount under checking.

[jordan2k510]

John,
What would the entire JE look like?

[JohnDMeyers]

If your normal checking is 01-1110-000, create 01-1110-110 Van insurance settlement

The JE would be:
CR 01-1110-000 checking $1,000
DB 01-1110-110 Van insurance settlement $1,000

[JohnDMeyers]

For more clarity on your reports:

CREATE 01-1109-000 GROUP Asset, Level 4, GROUP, GENERAL CHECKING

Make 01-1110-000 checking a Level 5, detail, account

Make 01-1110-110 Van insurance settlement a Level 5, detail, account

Now your reports will look like this:

GENERAL CHECKING
..checking $4,301.00
..Van insurance settlement $1,000
Subtotal General Checking $5,301.00

[jordan2k510]

Thanks. Simple enough. However as I enter it from the check, deposit it into the checking account. Would I first need to debit it to 1110-001 the checking account or does the sub account debit handle this?

[JohnDMeyers]

I think I answered incorrectly before.

I was thinking that you were asking how to move money that was already entered as income into a special account for tracking purposes.

If the question were asked, "how do I report the money that has not yet been recorded?"

My answer would be:

DB 01-1110-110 Van Settlement checking
CR 01-4130-000 Van Insurance Income

[jordan2k510]

I set it up per your recommendation. However now I cannot Reconcile Bank Account as it does not show up as being deposited (which it was when received from the insurance company.) Please advise.

[JohnDMeyers]

If you mean PowerChurch doesn't show it, you first have to make the journal entry and post it.

If you mean the bank doesn't show it, then you will need to follow up with them.

[jordan2k510]

PC doesn't show it in the reconcile bank accounts report. It does show on the bank statement as I have deposited the check.
I have already posted :
CR 01-1110-000 checking $5334
DB 01-1110-110 Van insurance settlement $5334

Should I change it to :
CR 01-1110-110 Van Insurance Settlement
DB 01-4130-000 Van Ins Settlement Income
Or add this entry?

[JohnDMeyers]

Either way, as long as the four-digit number is 1110, it will show up in the reconciliation window.

If it does not, it could be that the date on it is past the date that you entered for the bank statement. Uncheck the box at the top of the window that says, "Only show items posted before statement date".

If that is not the reason, maybe you haven't posted that transaction, yet.

[jordan2k510]

Thanks. It now shows up in the reconsiliation by adding
CR 01-1110-110 Van Insurance Settlement
DB 01-4130-000 Van Ins Settlement Income

I still have this entry
CR 01-1110-000 checking $5334
DB 01-1110-110 Van insurance settlement $5334
Should I reverse it? Do I need it?

[JohnDMeyers]

No, you don't need it. If you already did it, you should reverse it.