Pastoral Loan
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Pastoral Loan
The church has honored a request by the Pastor for a small bridge loan to help with personal expenses. We have structured the loan with auto withdrawals from salary with a balloon payment at the end of the term. Any suggestions on how to structure the account initially and how to deal with the pay backs?
Re: Pastoral Loan
I did a search on "Personal Loan" and found this info in a thread:tampatreasurer wrote:The church has honored a request by the Pastor for a small bridge loan to help with personal expenses. We have structured the loan with auto withdrawals from salary with a balloon payment at the end of the term. Any suggestions on how to structure the account initially and how to deal with the pay backs?
I'm assuming that you've created a Other Deduction pay item in Payroll. All you need to do is set the Pay Item to point to the liability account. Thus when the payroll is run, the deduction will occur, and the loan repaid. Since this isn't 'new' income to the church, this will take care of any issue with showing 'double income' so to speak.johndmeyers wrote: If you want to record the "loaned amount" in Fund Accounting, it will look a little weird, since loaning money isn't a "normal" function of a church.
You could create a negative liability amount. A "positive" liability is money that the church "owes". A "negative" liability is money "owed-to" the church.
I will assume you cut a check to the staff member for $1000 in March for the "loan".
Date: 3/1/11
CR 01-1110-000 checking $1000
DB 01-2180-000 Staff Loan Liability $1000
(post in October, which is your current month)
You will have a negative amount in liabilities until all the payments are made.
Neil Zampella
Using PC+ since 1999.
Using PC+ since 1999.
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- Posts: 10
- Joined: Mon Feb 03, 2014 7:42 am
Re: Pastoral Loan
Thank you. That is very helpful.