Crediting an Expense Account without Using a Double Entry?

[Shell]

In a nutshell, after $ has already been placed in the General Fund, how can I credit an expense account without effecting the General Fund Account balance? Using the double-entry, what account would I debit?

My situation is in regards to Reimbursable Income received:
Debit to General Fund Income Account & Credit to Offering Account classified as Reimbursed Expense. If I credit the expense account directly when I make my initial deposit entry, then the total deposits (debits) to my General Fund Income Account do not match the total credits to my income offering account totals. In the past , the amount has been transferred to another Income Account & then transferred back to make the "double Entry" possible. There has to be a better way?I now need to credit the applicable expense account & do not know what to make as my double entry?

Your Help would be greatly appreciated!!

[Zorak]

It sounds like the money still needs to be deposited, with a debit to the bank.

Instead of crediting an income account, since this is a reimbursed expense, you would want to credit the original expense account.

If the transaction has already been posted, a correction can be entered that debits the income account and credits the expense.

That should get you fixed up.

[Shell]

I actually did what you suggested this past January & February. However, if I don't credit the income account, it makes the income hard to track. In our month-end reports, a church member sees the deposit totals do not add up to the income totals and wonders where the $ went.

Any suggestions?

[Shell]

Wanted to clarify that the $ has been deposited & debited to the bank. The $ is sitting in the general fund & I'm trying to allocate it specifically to an expense account without changing the account balance.

Can you help? Thanks!

[Jeff]

All transactions have to have a debit and a credit. It sounds like you have recorded the money when you received as income by crediting and income and debiting your bank account.

Now it sounds like you really wanted this to reduce the amount that has been previously been recorded as a expense. Like someone has reimbursed the church for something the church has already paid for. (for example paying for their own study book in a sunday school class after the church has already paid for all the books.)

Is this what you are trying to accomplish?

[Shell]

That is exactly what is happening: someone has reimbursed the church for something the church has already paid for. The pastor wants $ for reimbursed expenses to be included with the offering deposit amounts in the following way: In the account activity report, he wants the debit subtotal for the general fund to be able to be tracked as he compares this total with the subtotal for income in the budget report.

I could establish an "Income" account & call it Reimbursed Expenses, but then I don't know what type of account to set up that I could debit when I credit the applicable expense account.

Any suggestions?

[Jeff]

In this case here the money the church received isn't income. It is a reduction of an expense. You are trying to show the money as income and also as a reduction of an expense and you are not going to be able to do that. Typically instead of crediting an income account when you receive such payments, you would credit an expense account. (ie credit expense and debit bank) This reduces the expense account and increases the bank account.

If you have already posted this payment crediting an income account, all you have to do is debit the income account and credit the expense account.

[Shell]

Thank you! I really appreciate your help!!!

I'm going to do exactly what you said. Secondly, if I throw all of these "non income" monies received into reimbursed expenses as a credit first (after this I would debit reimbursed expenses & then credit the applicable expense account), then the total amount of credits for reimbursed expenses + the total amount credited to income would match the total amout of deposits.

Can I ask you one other question along the same lines?

Income $ is transferred from the General Fund Checking to a Special Fund Checking. My double entry includes crediting the General Fund & using the General Fund "transfer to" account & on the other side I am debiting the Special Fund but crediting the applicable expense account. This causes my "transfer to" & my "transfer from" totals to not match. If I use the "transfer from" account in the Special Fund in the above scenario instead of crediting the applicable expense account, could I then set up an expense account called "internal account move" in which I would debit this "internal account move" & then credit the expense account where I really wanted the money to go to?

[DiamondE]

We have went back and forth with the finance committee on this topic.
Generally we call it "office monies" Put 4 into 01-1112 Checking then simply credit 01-5001 books expense account. Or if someone gives money to a student event we deposit the money in checking 01-1112 and go directly to the expense account -01-5201 Events for Students.

The deposits will match your bank reconcile. We creat an Excel sheet each week showing deposit plus office monies. This matches bank

It seems to work.