Unrestricted Net Assets

[axehead]

Our mother church kept records for us for a period of time. When we opened our own bank accounts and purchased Power Church Online, they gave us a check in the amount of our to date contributions - expenses. I recorded that check as coming from Unrestricted Net Assets. The problem I'm having is that the sum of money received from the Mother church does not show in the Income and Expense Annual Report. Should I have recorded this differently? in order to have it show up as income? Perhaps as a contribution from that church?

[NeilZ]

Our mother church kept records for us for a period of time. When we opened our own bank accounts and purchased Power Church Online, they gave us a check in the amount of our to date contributions - expenses. I recorded that check as coming from Unrestricted Net Assets. The problem I'm having is that the sum of money received from the Mother church does not show in the Income and Expense Annual Report. Should I have recorded this differently? in order to have it show up as income? Perhaps as a contribution from that church?

It should have been shown as Tithes and Offerings Income. You should never (well, mostly never) debit/credit Unrestricted Net Assets directly. There are times when you should do that, but this was not one of them.

The system will update the Net Assets automatically.

What I would do is reverse that transaction, and enter a new one in Funds Accounting with information in the note area about where it came from. It would DEBIT your checking, and CREDIT your income account.