In most cases, users will want to zero out internal accounts with negative balances. To zero out an internal account with a negative balance, transfer money from an internal account with money (a positive balance) to the account that is negative. In most cases, you will transfer money from the Church - General Operating account. Typically, this is done at the end of the fiscal year but it can be done at any time of the year.
If a new fiscal year has already been started and an account needs to be zeroed out, there are 2 options. The account can be zeroed out in the current year or in the prior year. If the current year should start with a zero balance, the transfer will need to be done in the prior fiscal year. After doing the transfer, it will require that the starting balances for the new fiscal year be updated after posting the transfer. For instructions on updating the starting balances, please see the link below.
- From the checkbook screen, click 'Transfer'. The total amount for the transaction is $0.00 since no funds are being added or subtracted from the bank account.
- On the first line of detail transaction, select the internal account with negative balance. No expense account will be selected on this entry. If desired, a comment can be entered.
- Enter the amount necessary make the balance zero.
- Add a second line to the transaction detail. Select the internal account to transfer the money from.
- Enter the same amount entered in Step 3 as a negative amount. See the illustration below.
- Click Save Changes.
The Periodic Financial Report will now show a $0.00 balance for the internal account.