Embedded Files
Employment Receivables
Receivable-Utilities & Taxes:
Receivable-Utilities & Taxes:
This section documents the procedure for accruing employment-associated expenses to the General Ledger of the Old South Haven Presbyterian Church’s online Management System (CDM+). This employee is a part-time Religious-Worker (RW), whose sole compensation is the residency of the Manse.
The employment contract provides reimbursement for ancillary utility (PP32) and taxes (PP33) expenses. .
Old South Haven Church Manse
PP32 Employee Utility Expenses Accrual:
PP32 Employee Utility Expenses Accrual:
For each vendor, a separate account has been created.
Fuel: Account
Electricity:
Water
Utility vendors invoice OSHPC for delivery.
Each of their accounts is linked to Fund Account RW Obligations Clearing 3002RW.
This clearing account functions to accumulate and tally (debits & credits) for all RW obligations, including utility expenses.
Utility expense obligations are posted to the ledger when the Treasurer pays the vendor invoice.
Bookkeeper posts the check to the General Ledger along with the other bank checks.
Since this is done automatically each time a utility delivery is made to the Manse, no further bookkeeper action is required.
Treasurer invoices the employee when a utility bill is paid
Employees make receivable payments through the Finance Secretary to the Receivable Giving Fund, which is posted to the Contribution Ledger and General Ledger in the usual fashion.
PP33 Employee Taxes Accrual
PP33 Employee Taxes Accrual
RW “pay” period is monthly.
The Treasurer issues a noncash paysheet to RW on the last day of each month,
Contains the necessary information to serve as an invoice for RW to reimburse tax obligations.
Quarterly IRS payment worksheets contain the same information (accumulated), and used for recording RW tax obligations.in OSHPC MS.
Each employment tax for which RW is obligated to reimburse has a unique expense account assigned linked to Fund Account RW Obligations Clearing 3002RW
Employment Taxes expense obligations are posted to the ledger when the Treasurer pays the IRS. (usually quarterly).
Reconciling Employee Receivable.
Reconciling Employee Receivable.
This procedure transfers the debit and credit accumulations in the Receivable Clearing Fund 3002RW (a temporary working fund account) and periodically adjusts the Receivable Balance 1300 (an asset account) to reflect the end-of-period receivable balance. Details of the accumulations to the receivable clearing fund are obtained using appropriate I&E reports. Receivables display as an asset for Balance Sheet report
Bookkeeper Procedure
Bookkeeper Procedure
Run Reports-> Ledger Report-> Balance-> Balance Sheet-> Detailed for the date (usually the last day of the quarter).
Choose value for Account 3002RW Receivable (under Fund Balances - Personal category)
If a positive number, reimbursable employee expenses exceeded payments during the preceding period; if negative, payments exceeded expenses.
Open Ledger -> Create Ledger Entries from the Recurring form for the Debt Clearing to Balance procedure.
⚠️Be sure to uncheck all Recurring Entry forms except the one being used – the Receivable Clearing form. Otherwise, an unwanted entry will be made in the ledger.
Select Change Entries
Use the value produced by the Detailed Balance Sheet Report; enter it in the Recurring Entry form.
Whether the Balance Report value is positive or negative, enter it in 3200RW credit & 1300 debit, preserving the sign.
The objective of this transaction is to reduce the amount in Account 3200RW (a temporary clearing account) to zero and to transfer the accumulated balance to the receivable account (an asset account). A positive value for a Fund Balance indicates that more income has been posted to the fund than expenses have been spent over the period. Therefore, the Receivable balance decreases. Similarly, a negative value for a Fund Balance indicates that more expenses have been posted to the fund than the fund has received in income over the period. Therefore, the Receivable balance increases. Since a credit to an asset increases its value, a negative credit decreases its value.
Select Save before Posting
Post the transaction to the Ledger.
Run the Detailed Balance Sheet Report again. If it shows a non-zero balance, there is a clearing error.
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