What is the recommended best practice in setting up an asset account that contains money with several designations? Is this a case where sub-account codes should be used? I'm not seeing any good examples in the Powerchurch documentation.
For example - a savings account (or a CD) containing funds that are allocated to
Music Fund
Youth Pilgrimage
Outreach
We track the total value of the categories via Net Assets, but leadership also likes to know when looking at a Balance Sheet how the total amount in the Savings/CD is allocated.
Additionally, if the money for the Youth Pilgrimage is spread across a CD and a Savings Account, Net Assets shows the total, but not where the dollars actually reside.
What is the recommended best practice in setting up an asset account that contains money with several designations? Is this a case where sub-account codes should be used? I'm not seeing any good examples in the Powerchurch documentation.
For example - a savings account (or a CD) containing funds that are allocated to
Music Fund
Youth Pilgrimage
Outreach
We track the total value of the categories via Net Assets, but leadership also likes to know when looking at a Balance Sheet how the total amount in the Savings/CD is allocated.
Additionally, if the money for the Youth Pilgrimage is spread across a CD and a Savings Account, Net Assets shows the total, but not where the dollars actually reside.
This is actually what I've done when setting up Powerchurch for a few congregations.
I used the same Checking account for all, just created individual Donor Designated accounts using the {b]Maintain List of Donor Restrictions[/b] function. You would create separate Net Asset Accounts for each designation, separate income accounts, but all would use the same asset account. When you need to 'release funds' you would do that as you would normally pay a bill, the funds would move out of checking, but at the same time you would click on the 'release restricted funds' button, select which designated account to release from, and the funds would move from the restricted net assets account to the unrestricted net assets account used by the checking or savings account.
You get all the visibility you need in the Balance Sheet, as well as the I&E Report.
Thanks for the reply! I think I understand the process setting up the donor restrictions and releases, but the documentation is very short of coherent examples using consistent accounts. Additionally, most PC+ documents don't reflect the changes from FASB ASU 2016-14. I know it only applies to "external reporting" but still...
So, to clarify, you would set up sub account numbers something like this?
1110 -- Checking
1110-010 -- Music Fund
1110-020 -- Youth Fund
1110-030 -- Outreach
4200 - Donor Restricted Income
4200-010 -- Music Fund
4200-020 -- Youth Fund
4200-030 -- Outreach
4800 -- Release from restrictions
4810 -- Temp Restrictions Release
4820-010 -- Music Fund
4820-020 -- Youth Fund
4820-030 -- Outreach
6400 - Program Expenses
6400-010 -- Music Fund
6400-020 -- Youth Fund
6400-030 -- Outreach