CNA L&P - Due To/From: FAQ's

Objective: The goal of this document is to describe features of the Due To/From Option that provides a means to track transactions that CROSS Entities.

  • The advantage of this feature is that, ConnectNow will automatically create entries to a Due To/From account when you create transactions that cross entities. When this feature is turned on, Statements of Financial Position will always be in balance.

 

Q: What do we mean by cross entities? 

A: Here is an example of a transaction that would cross entities (Parish=Entity 1, School=Entity 2).

 The Parish wrote checks from their bank account, but the expenses are for the school. The journal entry WITHOUT the Due To/From feature on would look like this:

Dr.  School Expenses                  $100.00

Cr.  Parish Checking                                 $100.00

 

If you were to run Statement of Financial Position for each entity, they would both be out of balance by $100.

 

If you turn the Due To/From feature on, the transactions in the system would look like:

Dr.  School Expenses                  $100.00

Cr.  Due to Parish                                    $100.00

Dr.  Due From School                  $100.00

Cr.  Parish Checking                                 $100.00

 

If you were to run Statement of Financial Position for each entity, they would balance

 

Q:How do I turn this option on?

Go to Church Manager>Options

and check the box for the Due To/From feature:

In the System, go to Accounts and create a Due To/From account (either an asset or liability account type) for EACH entity. Once the accounts are setup, you will need to assign the accounts in Setup.

Once you turn the option on, the system will look for any transactions that cross entities, as if the feature had always been turned on. Conversely, if you turn the feature off, all of the entries the system had made will no longer exist.

 

 

Have more questions? Submit a request

Comments

0 comments

Please sign in to leave a comment.