multiple assets for a single contribution Fund

[sojorner]

Question: How to handle different contribution types associate with a single contribution fund: e.g. I receive stock , which is then recognized at value when received, before being sold. This is placed in to a stock asset then moved to a cash asset (Checking / savings, etc.) after being sold.
I also receive cash / checks for this fund that are deposited into the cash asset (Checking. savings etc.).
The FUND setup in contributions allows for only one income and debit (deposit) account in the accounting module.

Thanks.

[NeilZ]

Question: How to handle different contribution types associate with a single contribution fund: e.g. I receive stock , which is then recognized at value when received, before being sold. This is placed in to a stock asset then moved to a cash asset (Checking / savings, etc.) after being sold.
I also receive cash / checks for this fund that are deposited into the cash asset (Checking. savings etc.).
The FUND setup in contributions allows for only one income and debit (deposit) account in the accounting module.

Thanks.

There's an old thread that covers what is necessary when there's a stock donation, and it doesn't mention using the Contribution system. Here's that thread:

viewtopic.php?f=3&t=2129&hilit=stock+receipt


However, if you do want to go through Contributions, you would create a separate Contribution Fund, for which you need to have a separate income account to cover 'gifts-in-kind' along with that stock asset. So when receiving the stock you would DB the asset, and CR the 'gifts-in-kind' 4000-series income account.

That said, what happens when you sell the stock, and its less or more than the value you originally entered creates a new can of worms. You would need to have a loss/gain income account which closes to the unrestricted net assets to cover this.

So based on the above, here's what you would see, using 01-1310-000 stock, 01-4410-000 stock income, 01-4510-000 gain/loss of stock income

A) Receipt of 1000 in ABC Manufacturing stock, the transaction out of Contributions would look like this in Funds Accounting

01-1310-000 Donated Stock Asset DB 1000.00
01-4410-000 Donated Stock Income CR 1000.00

B) Sale of stock with 100.00 gain

01-1110-000 Checking DB 1100.00
01-1310-000 Donated Stock Asset CR 1000.00
01-4510-000 Gain/Loss on Stock Sale CR 100.00

If there was a loss of 100.00 you would do the following:

01-1110-000 Checking DB 900.00
01-1310-000 Donated Stock Asset CR 1000.00
01-4510-000 Gain/Loss on Stock Sale DB 100.00

The transactions balance, and the unrestricted net assets (equity) account is adjusted properly.

As always, I would back up your accounting files before trying out any new transaction to insure that you can back out if the results are not as expected.

I always advise talking to a bookkeeper or accountant to verify any advice given.