Setting up preschool as another group

[bjsbrown65]

If a separate group is set up for preschool and both church and preschool use the same bank account, how does this work in fund accounting. Is the information passed through somehow to be updated? Does a separate chart of account have to be set up? Primarily now, the church pays the school's taxes and gas bill and the school reimburses the church. Using this scenario, are these accounts just added to the church's chart of accounts. I am really asking two separate questions as in the future, we may want to use powerchurch for the preschool also. Thank you for answering in advance.

[JohnDMeyers]

If there are a lot of expense accounts, other than the two or three you mentioned, you may want to start another Fund for the preschool.

If the church and the preschool use the same checking account, then make sure both Funds have the same 4-digit checking account number. i.e. 01-1110-000 and 02-1110-000 where 1110 is the 4-digit account number.

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To move money back-and-forth in this scenario, I would setup a two transfer accounts in each fund, like this:
01-9010-000 transfer to preschool
02-9010-000 transfer from general

01-9020-000 transfer from preschool
02-9020-000 transfer to general
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To move $50 from Fund 01 checking to Fund 02 checking:
CR 01-1110-000 general checking $50
DB 01-9010-000 transfer to preschool $50

DB 02-1110-000 preschool checking $50
CR 02-9010-000 transfer from general $50

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To move $40 the other way:
CR 02-1110-000 preschool checking $40
DB 02-9020-000 transfer to general $40

DB 01-1110-000 general checking $40
CR 01-9020-000 transfer from preschool $40

[bjsbrown65]

Thanks. This may come in handy later. For now, are you saying if there are just the 2-3 expense accounts for the preschool, it's o.k. to show them on the church's fund?????

[JohnDMeyers]

Yes. If it's just three, for example, you can create a GROUP account and the three expense accounts as detail accounts under the GROUP heading.