Income Category Transfers
This article explains why you might want to make an income category transfer, and how to create the transfer within ExpensePlus.
In this article:
What is an income category transfer used for?
Your charity or church may have decided to allocate or 'ring-fence' a portion of its income each month for a specified purpose. For example, 10% of unrestricted donations are to be allocated toward external giving / support of partner organisations.
Where this is the case, you will often need to account for the ring-fenced funds within a designated fund. (Alternatively, you may choose to top up a restricted fund as part of this process - click here to find out more about fund types.)
You can do this by using the 'transfer between categories' feature within the Adjustments screen. This will allow you to record the transfer out of your general fund, and into the appropriate category of the designated (or restricted) fund.
It's not possible to record this as an expenditure transfer out of one fund, and into the other fund as income, as this would result in your annual income and expenditure both being over-inflated in your end-of-year accounts.
Creating Income Category Transfers
To create an income category transfer:
- Within the Category Transfers screen, click 'Add Income Category Transfer':
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Manually calculate how much income you wish to transfer, and add this figure to the "Amount" box. The system will automatically show this amount as negative income in your General fund and, correspondingly, as income in the chosen designated fund.
If this is a transfer you are making regularly, to maximise visibility we'd suggest you create a specific income category for the purpose of allocating the transfer between income categories. (This will appear as negative income in the fund from which the money is being transferred).
Creating a repeating Category Transfer
If you want to set up a repeating category transfer, you can do this when creating the initial category transfer. To do this:
- Add the information as for a single category transfer (described above).
- In the Date box, add the date for the first transfer.
- Click the checkbox titled 'Recurring Monthly Transfer?' - this will create a transfer on the same day of all subsequent months within the financial year.
To add this as a percentage, you will need to manually calculate the percentage and then enter the monetary value. There is no mechanism to automatically transfer by percentage.
Which reports will show my income category transfers?
You can view the impact of income category transfers on the 'Source' category in the Income and Expenditure Transactions (by Category) report.
You can view the impact of the income category transfers on the 'receiving' category in the Income and Expenditure Summary (by Fund) report.
To help you better understand the Adjustments module as a whole, please visit the module overview page here.