transfers not on bank recon. report

[kimvdh]

Hi
I just transferred 1,500 from our 01 Gen Fund to our 03 Savings Fund - but I wanted it to go into a specific savings fund so i entered the transaction like this:
01 1110 Gen. Fund Transfer to Future Church Plant CR 1,500
01 9030 Transfer to 03 Fund DB 1,500
03 4220 Future Church Fund (Temp Restricted) Transfer From 01 Fund DB 1,500
03 9510 Transfer from 01 Fund CR 1,500

When i went to do my bank reconciling report the deposit did not show up (and the dates for the transaction are within the statement date)
what did i do wrong?

[JohnDMeyers]

Since it appears you want to show it as restricted income in your Fund 03, then I would suggest you do not want to use the transfer accounts.

So, I suggest that you reverse your two transactions and do this instead:

Take money out of General Fund:
CR 01-1110-000 checking $1,500
DB 01-4010-000 income account* $1,500
*use your income account number where you originally recorded the income

Put money into Fund 03
DB 03-1120-000 savings $1,500
CR 03-4220-000 restricted income $1,500

[kimvdh]

what are the transfer accounts for then?

[JohnDMeyers]

One example of using a transfer account is to move money that is more than a year old in a bank account. That transaction no longer needs to involve an income account, because the income from that year has already been closed-to an equity account.

If you are moving income around in the year it was received, you have to be careful not to show it as income twice.

So, if you had $5,000 in a mutual fund in Fund 01 that was going to be used for a building project in Fund 03, and the money had been there more than one year, it would look like this:

CR 01-1810-000 mutual fund $5,000
DB 01-9810-000 transfer $5,000

DB 03-1110-000 building checking $5,000
CR 03-9810-000 transfer $5,000

Notice there are no income accounts to contend with. I like to keep the four-digits the same when doing a transfer, so that when I run a consolidated report (across all Funds) it cancels out to zero.

I assumed you were dealing with current income, because you included a restricted income account in your transaction.

[kimvdh]

Yes it is current income. Every year we budget some money from the current year's income to be put aside to save up to support a future church plant.

thanks! your explanation makes sense I will reverse my two transactions and do what you said instead:

Take money out of General Fund:
CR 01-1110-000 checking $1,500
DB 01-4010-000 income account* $1,500
*use your income account number where you originally recorded the income

Put money into Fund 03
DB 03-1120-000 savings $1,500
CR 03-4220-000 restricted income $1,500

[kimvdh]

the 03 4220 Future Church Fund (Temp Restricted) will be a "long" term savings -does that matter? will the totals stay in there when i do our year end?

[JohnDMeyers]

After you close the last month of this year, the totals will remain in the asset account and equity account.

In other words, you will see this on your balance sheet:

Assets
..Savings $1,500

Equity
..Temporarily Restricted Net Assets
....Church Plant $1,500

[JohnDMeyers]

In case you're interested, years from now, after you do the church plant, and spend that $1,500, it will become part of the Unrestricted Net Assets like this:

Assets
..Building $1,500

Equity
..Unrestricted Net Assets $1,500

[kimvdh]

THANK YOU!

[kimvdh]

at our year end we transfer out any excess money from our 01 general fund into the savings 03 fund so that the 01 Fund only has the current year's income
so how should i do that transfer?
Should i do the transfer on the last day of fiscal year (CR 01 1110 & DB 01 4030 and DB 03 1120 & CR 03 4640)
or
Should i wait until i close the year and then on day 1 use transfer accnts to move the equity?

... if in the future we are ever in the opposite scenario and are short funds we would be transferring $ from savings into general fund - that would be using transfer accounts - because the money in the 03 fund is all "old" money already recorded in previous years as income

oiy! just when i think I'm getting a hang of this

We started PC on day 1 of our current fiscal year. The opening balance of 01 fund was 2,000 (to give our selves a cushion) and the carry over/surplus money from the previous year (-2000) was the opening balance for 03 fund. we opened bank accounts at the same time which had the same amount as opening balances

[JohnDMeyers]

Hmmm. It would certainly be easier to wait until you close the last month of the year.

That way, all of your income and expense accounts will be zero, and the Balance Sheet will show you exactly how much you have to transfer.

The only drawback is that the transfer transaction will be in the new year.

Right now, I think the ease of doing it this way far outweighs the inconvenience of making that transaction in the new year. If I sleep on it and think otherwise, I will let you know.

So, before you close the last month of the year, MAKE A BACKUP of the current year. After you close the last month of the year, run a Balance Sheet and transfer the Assets to Fund 03 using the transfer accounts.

For example:
CR 01-1110-000 checking $5,000 (description: transfer 2012 ending balance)
DB 01-9110-000 transfer $5,000

DB 03-1110-000 checking $5,000 (description: receive 2012 ending balance)
CR 03-9110-000 transfer $5,000

[kimvdh]

the problem I'm still having tho is that the balance sheet is not equal to what is actually in the back and i can't figure out how to make them equal ... see my previous post "balancing between reports"

[kimvdh]

Never mind the previous post... i just reconciled all 3 accounts for Sept and then ran a balance sheet for each and they all are equal to the adjusted bank balance !!!
funny how balanced numbers can make your day!
what a relief
thanks for all your support & help!