Transfer between restricted accounts within one fund

[machavez]

I need to move money from one restricted account to another restricted account within one Fund with its own checking account. From what I read there is no need to use transfer accounts. Thus, would this be the correct transaction?

Debit: DF 3230: Aldersgate Alive
Credit: DF 3240: Sager Brown

I feel as if I am missing something.

Thanks,
K.B.

[Matt]

What is the reason for needing to move the money? Depending on the reason the transaction you have listed may or may not be correct.

[machavez]

Long winded....
Members contribute to "Faith Promise" by pledge. Committee (Mission Task Force) disburses money to numerous accounts under their Faith Promise umbrella. As one account is closed or phased out (Sager Brown is no longer a mission of the Committee), any funds left over get funneled into an existing Mission Task Force account.
So Faith Promise is an account in our "Directed Funds" Fund (Labeled DF; has own checking account) as are the 11 accounts under Faith Promise. In the past I made the mistake of using expense/release accounts to move money from account to account. This caused double-counting since the funds have already been recorded under "Faith Promise." Thus trying to determine how to move money without double-counting or losing existing income/expense information of old account.
Make sense?
Not sure we are ready to move it to its own Fund.

[JohnDMeyers]

You should move the money using the restricted income accounts, rather than the associated equity accounts.

For example, Aldersgate Alive, which you show having an equity account number DF 3230, has a temporarily restricted income account associated with it as well. I will assume that it 4230.

DF-4230-000 closes-to DF 3230-000.

To move money from Sager Brown to Aldersgate would look like this:

DB DF-4240-000 Sager Brown
CR DF-4230-000 Aldersgate Alive

The closes-to association will automatically update the equity accounts.

[Matt]

Thank you for providing the additional background. The only way to close out a remaining restricted fund balance, yet keep the corresponding restricted income and expense history for that restricted fund intact, is to do a direct equity to equity transfer like the one you listed in your initial post. Given the situation you describe and the accounting effects you are wanting to achieve a direct equity to equity transfer would be the approach to take. For documentation and future reference purposes the decision to make this transfer, along with the amount transferred, should be documented in the meeting minutes (or something similar) for the Mission Task Force Committee. A detailed note should also be input in the "Notes" box when entering the transaction in Fund Accounting.

[machavez]

Thank you!
One more question...is it possible or practical to use the "transfer" function within an accounting fund?
I use the transfer function between our 3 funds.

[JohnDMeyers]

In a transfer between funds, each fund must have two accounts affected. The transfer account provides the second account in each fund.

In a transfer within a fund, there is no need for the transfer account. You transfer from one account to a second account, which are the two accounts that you need for the transaction to occur.