I know I need to try to set up some TR's, but every time I read directions for setting up TR's I give up.
It looks so much more complicated; with more numbers to deal with and things to remember, than just tracking my dedicated items through Funds and sub-accounts or flow-thru accounts.
Now that I have survived our new construction project, I SHOULD have time to try this year; but why should I? What is the advantage if my old, easy ways worked?
Ready to take the plunge...if you give me a shove!
Kristi
Hesitant to use Temp Restrict
Moderators: Moderators, Tech Support
Hesitant to use Temp Restrict
"Trust in the Lord with all your heart and lean not on your own understanding." Proverbs 3:5
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tborgal
- Posts: 863
- Joined: Thu Jun 03, 2004 4:55 pm
- Location: New England Bible Church, Andover, MA
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I have the same issue as Kristi. I use sub-accounts to track these pass throughs. I find no good reason to go through the pain of making the change to TR's. The only problem with my method is when you have a balance at the end of the year. It does not carry forward. Has anyone come up with a good method for this situation?
Example:
08-XXXX-801 Income account
08-XXXX-801 Expense account
These keep good track during the fiscal year, but when the year ends they zero out. If you try to use dates covering more than one year the results are not always what you expect.
Example:
08-XXXX-801 Income account
08-XXXX-801 Expense account
These keep good track during the fiscal year, but when the year ends they zero out. If you try to use dates covering more than one year the results are not always what you expect.
Tom
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Zaphod
- Program Development
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- Location: PowerChurch Software
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The idea with subaccounts to track restricted money is that you also subaccount the bank. In this case, you'd use 08-1110-801 for any transactions involving this restriction. Your net amount would reside in that asset subaccount across years.
As you can imagine, that can get messy, ergo, we created the Temp Restricted process.
As you can imagine, that can get messy, ergo, we created the Temp Restricted process.
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tborgal
- Posts: 863
- Joined: Thu Jun 03, 2004 4:55 pm
- Location: New England Bible Church, Andover, MA
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I have twelve to 15 of these accounts I am tracking this way, so as Kristi said this could be pretty time consuming to to the initial setup. I guess I stick to the present method and just be sure to empty the accounts by year end. I did have to do some gymnastics this year with one but usually I can manage to zero them out by year end.
Thanks for the response.
Thanks for the response.
Tom
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Zorak
- Tech Support
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- Joined: Thu May 13, 2004 9:59 am
- Location: PowerChurch Software
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As Zaphod was saying, in setting up sub-accounts on your checking or savings, it will allow you to keep a balance from year to year.
When money comes in for a particular restriction, you debit the money into 1110-100 (example) instead of using -000. This sub-account, which is a part of the total bank balance hold the amount of the deposit.
When you write a check for that particular restriction, you credit the money from 1110-100 instead of using -000. This, again, takes money from the separate "slice of the checking account pie" and therefore, will always have that restriction's "available" balance.
If you are using income accounts to track restricted money, then as TBORGAL said, you will lose those balances at the beginning of each year. Historically, people have recorded the previous year's total income and expense balances as a new transaction each January to "carry over" the restricted amount.
That is a bad idea, of course, since it makes Income & Expense numbers completely false and unusable in any sense of the word.
When you think about all the work arounds that you end up having to do to make it work the old way, it really doesn't make sense to use the new donor restrictions system.
When adding a new donor restriction, using Maintain List of Donor Restrictions, it will walk you through each step of the process, adding new accounts for you... When writing a check where funds need to be released from restriction, there is a button on the screen that reads "Release funds from restriction" which adds that part of the transaction for you...
In reading the in-depth documentation about how the money flows from one account to the next, it can be very confusing indeed. When you look at the proper way of setting it up and managing the restrictions, we couldn't have made it any easier.
As said earlier, you don't have to use it, but you shouldn't be afraid of it either. You don't have to understand it for PowerChurch Plus to track these balances for you.
When money comes in for a particular restriction, you debit the money into 1110-100 (example) instead of using -000. This sub-account, which is a part of the total bank balance hold the amount of the deposit.
When you write a check for that particular restriction, you credit the money from 1110-100 instead of using -000. This, again, takes money from the separate "slice of the checking account pie" and therefore, will always have that restriction's "available" balance.
If you are using income accounts to track restricted money, then as TBORGAL said, you will lose those balances at the beginning of each year. Historically, people have recorded the previous year's total income and expense balances as a new transaction each January to "carry over" the restricted amount.
That is a bad idea, of course, since it makes Income & Expense numbers completely false and unusable in any sense of the word.
When you think about all the work arounds that you end up having to do to make it work the old way, it really doesn't make sense to use the new donor restrictions system.
When adding a new donor restriction, using Maintain List of Donor Restrictions, it will walk you through each step of the process, adding new accounts for you... When writing a check where funds need to be released from restriction, there is a button on the screen that reads "Release funds from restriction" which adds that part of the transaction for you...
In reading the in-depth documentation about how the money flows from one account to the next, it can be very confusing indeed. When you look at the proper way of setting it up and managing the restrictions, we couldn't have made it any easier.
As said earlier, you don't have to use it, but you shouldn't be afraid of it either. You don't have to understand it for PowerChurch Plus to track these balances for you.
Restricted Funds are Great
I would definitely encourage anyone to try the restricted funds. Once you get through the first one, the rest are just a few clicks. Go to the articles in Tales from Tech under the support area. There are a couple of articles that really helped me understand the restricted funds and gives good examples.
Just remember that you have to set up restricted funds by adding a release account under setup. Again, the articles explain this very well.
If you go through this and start using them, you will wonder why you ever handled it any other way. PC has done a great job making this a simple process, which just a little time spent setting it up, you have a very powerful system for tracking these funds.
Just remember that you have to set up restricted funds by adding a release account under setup. Again, the articles explain this very well.
If you go through this and start using them, you will wonder why you ever handled it any other way. PC has done a great job making this a simple process, which just a little time spent setting it up, you have a very powerful system for tracking these funds.