Transferring and dedicated accounts

We are receiving donations for a capital campaign, and I have been depositing these funds in our church bank account and crediting a dedicated fund.

We've decided to transfer this money into a separate bank account for this money only. 

I set up the bank account, but now I'm confused as to how to make the journal entries. I can make the transfer journal entries, but what happens to the balance in the dedicated account, does it remain the same?

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  • Official comment

    Hello Kris,

    Hope all is well.

    Thank you for your question. 


    Since the money has already been dedicated, you will not need to make any changes to the offset accounts. You can just leave the money offset in the original Dedicated accounts. 

    What you will need to do inside of shepherd's Staff is to transfer the money from your one bank account to the other bank account. You have one of two choices and you will pick the appropriate choice based on whether or not you will reconcile both bank accounts in Shepherd's Staff. 

    1. If you are only going to reconcile one of the two bank accounts. You can do a single journal entry. You would credit the bank account you want to decrease and debit the bank account you want to increase.
    2. If you want to reconcile both bank accounts you will need to create two journal entries. One to be reconciled with each bank account because a Journal entry can only be reconciled once and if you reconcile the single journal entry there will be no transaction to reconcile with the second bank account. 
      -  The first Journal entry would be used to decrease the first bank account. You would credit the bank account and debit a transfer account. I usually use an expense account for the transfer account but any account type can be used. 
      - The second journal entry would be used to increase the second bank account. You would debit the second bank account and credit the same transfer account from the step above. The credit in this transaction will return the transfer account to its original balance. Please make sure both of these journal entries are created for the same date. 

    If you have any further questions please feel free to give me a call at 1-314-268-1315.

    Sincerely,
    Rod Kyles
    Manager of Concordia Technology Solutions (Support)

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  • Hi Rod,

    Unfortunately, I did not see your post until AFTER I reconciled and posted one of the two bank accounts (when I ran in to trouble reconciling the second account).  I am familiar with using QuickBooks and thought only a single journal entry was needed (it took of both balances).  Is there a way to undo a posted reconciliation so I can create the two journal entries?  If not, what can I do so that I can reconcile the other bank account?  HELP!

     

    Thanks,

    Hope Miller

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  • Hello Hope,

    No worries. This matter can be corrected by creating three transactions. The first step would be to create a journal entry that reverses the initial transaction that was reconciled. Next we’ll create the two transactions needed to transfer the money. First, create a journal entry that credits the first bank account and debits the pass-through account. Second, create another journal entry that debits the second bank account by that same amount and credits the pass-through account. The balances should appear properly for both bank accounts. You will be able to reconcile the second bank account as usual and I would reconcile the correction and the first part of the transfer the next time you reconcile the first bank account.

    Please let us know if you have any other questions.

    Sincerely,

    Daniel Ray
    Software Support Technician - Concordia Technology Solutions

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  • The problem for me is that I'm trying to transfer from one bank account (Unrestricted Money) to another (Restricted Money) and can't just use ONE transfer account (whether it be created as an Expense or Income) because the Restricted Money is set up as all Dedicated Accounts. The balance of all the Dedicated Accounts equals what is in the Restricted Account.

    For example, we transferred money from the Unrestricted account into the Building Fund (Dedicated account within the Restricted account). We couldn't just do 2 JEs with CREDIT out of the Unrestricted into the (expense) Transfer account and then back out of the (expense) and into the Dedicated account because that would mean using the CREDIT for both. 

    I had to create TWO transfer accounts. One as an Expense Account (Transfer out) and one as an Income Account (Transfer In) and basically my two transfer accounts always show a balance, although it is equal in/out.

    Is there any way to fix this???

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