Moving $ and Expenses between Funds

[emellesee]

Hi,

We want to open a new fund and move money that was sitting in our General Fund into the new fund. How do we move this money without making it look like new money has appeared out of nowhere? Also, we issued a cheque against the wrong fund. How do we move the expense from one fund to another?

Thanks for your help!

[Matt]

Let's say you want to move $1,000.00 from the General Fund checking account to the new fund. This can be accomplished as follows:

DR Fund Balance - General Fund 1,000.00
CR Cash (Checking Account) - General Fund 1,000.00

DR Cash (Checking Account) - New Fund 1,000.00
CR Fund Balance - New Fund 1,000.00

This entry will not affect your income accounts so it won't won't look like new money. If you are using version 9.0 you can also use the Transfer accounts to accomplish the same thing.

Regarding the misposted check, just reverse the check from the incorrect fund and post it to the correct fund.

[emellesee]

We were trying to move money from our General fund to a Bursary fund
Here's what we did, let us know how to fix it:
January 2004 Transaction
01-1100 General Fund Asset (Bank Account) CR $1.00
01-5703 General Fund Expense (Bursary Seed Money) DR $1.00
06-1100 Bursary Fund Asset (Bank Account) DR $1.00
06-4610 Bursary Fund Income (Income Transfer) CR $1.00

In an attempt to fix this, we entered another transaction:
December 2004 Transaction
06-4610 Bursary Fund Income (Income Transfer) DR $1.00
06-4045 Bursary Fund Income (Givings) CR $1.00

As things now stand, if I run an income/expense report, under Contributions it shows $1.00 received as Bursary Givings, but it wasn't income, just money shuffled around. It also shows the money as an expense in the Bursary Seed Money expense account (I'm not sure if that's a problem or not). If I understand the last post correctly, I think I should move the money from the Givings account (06-4045) to the Bursary Fund Fund Balance account. Is that correct?

Thanks for your time & patience,
ML

[Matt]

Yes, that will work. Just to clarify, you would make the following entry in December 2004:

DR 06-4045 1.00
CR 06-3XXX 1.00 (Fund Balance account)

You probably would want to fix the Bursary Seed Money expense account as well, as follows:

DR 01-3XXX 1.00 (Fund Balance account
CR 01-5703 1.00