Creating Additional Funds

[Sandra Michalscheck]

I started this on the Restricted Donors Post I was doing, but figured I better move to a new topic post.

So--
Regarding new funds that I've added: 02, 03 etc. How do I get a beginning balance allotted for them once I have finished setting up their charts of account? If it is a four-part fund transfer, where is it posted to?

[Sandra Michalscheck]

Okay, when I set up the additional fund, 02, am I posting its beginning balance (four part transfer from 01) through the 02-3110 unrestricted net assets account from the 01-3110? Or through the 02-1110 bank account line?

[Sandra Michalscheck]

Well........
I never did receive back a reply on this. But after 2 days of thinking about it, I'm figuring now that the beginning balance to the newly added funds is going to be made through the 9000 income transfer accounts from the 01 general. At least that's what I'm trying at this point.
Thanks.

[Jeff]

You could actually do this a couple of ways. Say your are setting up fund 02 and $750 in the 1110-000 checking account that needs to be moved to fund 02. Either of the following entries would work:

01-1110-000 checking account (cr) 750
01-3110-000 unrestricted equity (db) 750
02-1110-000 checking account (db) 750
02-3110-000 unrestricted equity (cr) 750

This transaction will never be shown on the income & expense statement, it just moves money between balance sheet accounts.

or

01-1110-000 checking account (cr) 750
01-9120-000 Transfer to fund 02 (db) 750
02-1110-000 checking account (db) 750
02-9210-000 Transfer from Fund 01 (cr) 750

This transaction will be shown on the income & expense statement by using the transfer accounts.

You could use either transaction, the end result is the same. Since you are still setting up, I personally would probably lean towards the first transaction since it does not change the I&E statement and would be one less thing to explain at the committee meeting.

[Sandra Michalscheck]

Good deal. I'll go with the first. Thank you, Jeff, for all the help.