Using restricted funds

[Bill]

John, you have put a lot of thought into this answer and I'm very grateful to you.
The cleanest procedure would be to create a separate FUND (03), as you say. That way, unrestricted
money flows in (4110); this money is moved (debit 6XXX) per monthly budget
to separate FUND (03). When we actually SPEND the money, it'll all show up in 03 Fund
as an expense item.

The sub-acct bank acct idea "hides" the money and everything is fine until you SPEND the money.
Then, it shows as a double expense (IF you use the same expense item (6XXX). That wouldn't
be good.

Thanks again for all your help.

[mbanas]

Hello,
2 1/2 years ago I left my ministry position as bookkeeper. The person hired as my replacement stopped using PowerChurch and used Quicken. She's quit and I'm back. I had not mastered PowerChurch previously, so it is taking me a little time to get my bearings.

I have reinstalled PCPlus (version 10.4) and entered data for June and July of 2010. During set-up, I entered $0.00 for Temporarily Restricted Donations, only to discover that there is $435.00 worth of donations in the checking account that came in as Temporarily Restricted donations. Now I want to move it and I'm not sure how.

Based on what I've been reading on this forum, would I move the income (erroneously received as unrestricted) to restricted income in one move by:

DB 01-4020-000 Unrestricted Contributions
CR 01-4210-101 Temporarily Restricted - Lily Fund

Does this automatically increase my Net Asset account 3210-101 Lily Fund?

I think you guys are "saints" for putting up with questions that reveal a lack of accounting savvy.

Thanks in advance,
Susan

[JohnDMeyers]

Susan:

As a note on using this forum, if you have a new question, even if relates to an old "thread", it is better to start a new question rather than replying to an old one. It is easier for those of us who like to attempt to answer questions to find you that way.

You are correct in your transaction to move the move to restricted income, provided 01-4210-101 really does close to 01-3210-101 (you can check in the Chart of Accounts, on the "Detail" tab for 01-4210-101).

You will also need an account like 01-4810-101 which will also close to 01-3210-101, and 01-4999-000 which closes to 01-3100-000.

When you spend the $435.00, or any part of it, you can release the restriction. It takes one transaction for the expense, and one for the release (actually, both can be combined in a 4-line single transaction).

Pay 435.00 to someone:
CR 01-1110-000 checking
DB 01-5335-000 whatever expense account

Release the amount:
DB 01-4810-101 release for this item
CR 01-4999-000 general release

and 01-4810-101 will always have a negative value.

[mbanas]

Thank you, John. In the future I will post a new question rather than burying myself in an ongoing string. Thanks for finding me!

I checked my chart of accounts, and yes...my 4210-101 does close to 3210-101.
I have a 4810-101 which closes to 3210-101, and I have a 4999-000 that closes to 3110-000.

So for now, just to make the transfer, I will...
DB 01-4020-000 Unrestricted Contributions
CR 01-4210-101 Temporarily Restricted - Lily Fund

...and use the other example (the 4 line single transaction) each time I spend any or part of the restricted amount.

Thank you so much for your quick response! I'm thinking this forum could be a life-saver!
Susan