Returned Contribution Check

[bobfree]

What is the best way to make adjustments in the Accounting Module for contribution checks that are returned for NSF from the bank?
We have not yet started using the Contribution Module and enter the Tithes and Offerings each week as a gross figure into the Accounting Module.
My thoughts are to enter a Credit transaction against the checking (Asset) account and a Debit transaction against the net assets (equity) account. This would reduce both of these accounts by the amount of the returned check.
Do I need to do anything other than this to make sure all records are corrected? By the way this money was not related to any restricted funds.

Thanks,
Bob Freeman

[NeilZ]

What is the best way to make adjustments in the Accounting Module for contribution checks that are returned for NSF from the bank?
We have not yet started using the Contribution Module and enter the Tithes and Offerings each week as a gross figure into the Accounting Module.
My thoughts are to enter a Credit transaction against the checking (Asset) account and a Debit transaction against the net assets (equity) account. This would reduce both of these accounts by the amount of the returned check.
Do I need to do anything other than this to make sure all records are corrected? By the way this money was not related to any restricted funds.

Thanks,
Bob Freeman

That sounds about right.

However, you really should start using the contributions & membership modules. This would make your life so much easier, especially at end of year when tax statements need to be created.

If you were using contributions, all you would have to do is have your financial secretary, or contributions monitor:

1. Open up contributions entry.
2. Set the date for the Sunday that check was written for
3. Locate the person in the system
4. Enter the amount of the check as a NEGATIVE amount.
5. Save the entry.
6. Post the contributions.

If you have everything setup properly, the entry will be posted over to accounting, and when you do your posting there, all the entries will automatically be made, and the system adjusted.

[bobfree]

Thanks for the reply. We are working toward implementation of the contributions module but until it is in place we will have to address the issues as they arise.

I have found that my original plan omitted one important step. That is to insure that the income account, tithes & offerings, also shows a decrease to account for the returned check.
The correct steps are:
Credit the checking(asset) account in the amount of the returned check.
Debit the tithes & offerings(income) account by the same amount.
This will insure that both accounts are reduced.
When the transaction is posted the net assets(equity) account will be automatically updated since the tithes & offerings account closes to that account.

Bob Freeman