Hello, This will be my first year end working as a book keeper for a village hall charity. It is a very well used village hall who receive funding to run specific projects. Part of the budget for some of these projects are for contributions towards hall hire and minibus use. This is for use of our own hall and minibus. Traditionally, the previous book keeper did an "internal" invoice but I'm not sure that this is the correct treatment - perhaps to show the funder, but not sure what else.
To clarify - these funds are restricted funds. I'm not sure what I should be doing with these "internal" invoices - the "customer" is the project. Should I do a year end journal to credit the debtor account and debit an expense account? I use QB online. Is there a better way of treating these costs/recharges?
I look forward to hearing your responses,many thanks
So am thinking are the restricted funds are in a separate ring fenced account Bank account, 'customer' account or separate balance sheet account? So you have to get permission to use allocated funds or prove that a set of parameters have been achieved, before you access the cash?
What I would do first is try to find out what cost code she was keying the internal invoice to. Depending on the answer to the above it might be that she was doing the invoice to do what you would be doing by way of journals, ie just a way to 'manipulate' the software to get it to do what you need it to do(*)But care.....does someone need to see that invoice, worth checking the terms of the funding as they often have strict regulations.
(*) But also....does your QuickBooks allows a Bank rec if you do journals to it? Old sage versions didn't.
Someone on here posed the question about having a problem with a bank rec on Quick books and I suggested there might be an issue with journals, but unfortunately I've not had an answer yet to know if this is also a quick books issue (and I'm not really a QB user)
-- Edited by Cheshire on Thursday 24th of March 2016 08:36:11 AM
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Just checked back through the posts and it wasn't a QB user, instead it was Kasfkow, but I've chased for an update anyway, but still let us know how you get on.
-- Edited by Cheshire on Thursday 24th of March 2016 08:45:15 AM
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
The funds are in our bank account and I have a "Customer account" set up for each of the ring fenced donors. The previous book keeper used spreadsheets.
I'm just keen to know if anyone else out there has a similiar set up and what they do/how they treat such usage/charges.
