CD Redemption for expenses Question

[Cambrose79]

We recently redeemed the full balance of a CD to pay for an insurance deductible for a new roof. We had the CD listed as an asset and we transferred to the general checking account as an asset.
So, I credited the CD asset and Debited the General Checking Asset. That worked fine but now I am a little confused as to how to proceed.

The CD balance was $5010.66 and I put the entire amount in the general checking. Now I want to credit our building fund $2,500 for the insurance deductible expense at a later time. My question is, how do I credit the income account without debiting the checking account at this time?

[Jeff]

This isn't income. You converted an asset from one form to another. So you would not credit an income when you cash in the CD.

Is your building fund set up as another accounting fund in PowerChurch?

[Cambrose79]

The building fund is an expense account in the budget. Our intent was to use the CD proceeds for the insurance deductible instead of using the budgeted funds but I am not sure how to properly do that or if I can do that.

[Jeff]

I take it everything is in one accounting fund. This would be an expense to the church, because it is an outflow. To keep it separate, you could create a separate non-budgeted expense category and then create an expense account for insurance deductible in that area. If you set the leveling right in PowerChurch you could get a budgeted expense subtotal and then a non budgeted expense subtotal, and then an overall total expenses number.