Rakefet Accounts
Written by Lise Rosenthal Wednesday, 29 April 2009
Dear Lise,
Several months ago a congregant made a L100 donation to the Library Fund. Subsequently he found himself in financial straits. As our fiscal year draws to a close, he has still not paid off his membership subscription. The financial secretary gave him permission to retroactively apply that donation to his subscription and told me to take care of it. Should I just change the account number and payment type in the original transaction?
Puzzled in Portsmouth
Dear Portia,
Changing the account number and transaction type would solve your congregant's problem, but it would certainly alarm the librarian who would find himself out a hundred pounds with no explanation. A better solution would be to make a notation in the memo field of the original transaction that in June it was "reallocated to subscription per Jeremy Davis." and then add (dated today) a Work Credit to the subscription account with the memo "reallocated from library donation of 4/1/09." The final step to actually reallocate the money is a journal entry debiting library fund and crediting subscriptions, also with today's date. That way, everyone involved is clear on what happened. You will note that none of the transactions with the current date involve activity in a cash account, since the money involved happened last winter.
Love, Lise
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