Question about transfer accounts:

[silvertown]

We have two funds. 01 is unrestricted and 02 is temporarily restricted funds. On our new budget, we are giving $25 from our unrestricted funds each month to one of our temp restricted fund accounts - "Food Pantry". Would it be easier to do it through transfer accounts rather than do a check and manually deposit it into the other fund account?
Using the example in the handbook (11.55) page 227, would I do it as:

01-1110-000 checking account credit 25.00
01-9100-000 transfer to other funds debit 25.00
02-1110-000 Checking acct (temp-restr) debit 25.00
02-9200-000 Transfer from other funds credit 25.00

Then to transfer to proper account:
02-9200-000 Transfer from other funds debit 25.00
02-4807-107 Food Pantry (equity acct) credit 25.00

Yes?

Let me know. Thanks!

kim

[NeilZ]

We have two funds. 01 is unrestricted and 02 is temporarily restricted funds. On our new budget, we are giving $25 from our unrestricted funds each month to one of our temp restricted fund accounts - "Food Pantry". Would it be easier to do it through transfer accounts rather than do a check and manually deposit it into the other fund account?
Using the example in the handbook (11.55) page 227, would I do it as:

01-1110-000 checking account credit 25.00
01-9100-000 transfer to other funds debit 25.00
02-1110-000 Checking acct (temp-restr) debit 25.00
02-9200-000 Transfer from other funds credit 25.00

Then to transfer to proper account:
02-9200-000 Transfer from other funds debit 25.00
02-4807-107 Food Pantry (equity acct) credit 25.00

Yes?

Let me know. Thanks!

kim

Kim,

you could have avoided this completely by not using a separate fund for the restricted funds, but using Restricted Income Accounts in your Operating Fund - 01.

Are you using two separate checking accounts? It doesn't appear so since you're using the same account number for the checking accounts, you may want to think about creating the accounts in Fund 01, and transferring the funds to the 01 Account. In this way, you can just click a button on your Accounts Payable invoices, to release the funds. The system would then track the release, and so on.

It really doesn't pay to use separate checking, or even a separate savings account (since they don't make all that much anymore anyway).

[silvertown]

We have two separate checking accounts...it has been this way for years, and so on it goes...lol

I do have separate numbers for each, (01-1110 and 02-1115) I just used the same numbers in my example to avoid confusion. So, will that work? or no?

[NeilZ]

We have two separate checking accounts...it has been this way for years, and so on it goes...lol

I do have separate numbers for each, (01-1110 and 02-1115) I just used the same numbers in my example to avoid confusion. So, will that work? or no?

Well, you still have to move the money at the bank, however, you can do that via EFT, you won't have to write a check. Is that possible. In which case you'd still have to write a check from AP, albeit a manual check using EFT as the number from Fund 01, and you'd still have to reflect that deposit by creating a transaction in Fund 02.

You're really not saving yourself any steps in this case just letting the system create some of the transactions, somehow you have to transfer funds from one checking account to the other. If you get a chance, I would try briefing your trustees/board/session/council (you pick which one ) about how much easier your life would be without the second checking account.

[silvertown]

Life made easier? Is there such a thing?

Thanks for your advice!