LA GL - Deposits: How to record donations as both Income and Resticted Money?

How to record donations as both Income and Restricted?

Record the income as normal with a Deposit.

For it to both be on the Income statement and also be carried forward when End of year is run, a Journal Entry is needed to enter the balance to a restricted LT account

  • Create a Journal (GJ) entry that will move money out of the Equity (debit) account into the Restricted LT account (credit) for the balance of the Income account (or the amount of the restricted balance). 

NOTE: It is important that the Equity account used here is the Equity account that the Income account with the current balance is washed to at the end of year.  Normally there is only one Equity account per Fund but if there are two or more make sure to use the correct one. 

  • Then when the End of Year process is run the Income will wash into the Equity account bringing it back to the correct balance.  The LT account will carry forward it's balance into the new year.

If payments are made for the Restricted account, first reduce the Restricted LT account to zero before recording expenses (if there is not enough income balance to cover all the expenditures).

 

Related Articles

How to use Deposit Assistant to add Contributions to the Ledger Reversing a deposit made via deposit assistant.

How to record the sale of CD for Restricted funds (CD not tracked in Logos)

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