These topics provides a way of tracking asset transfers into a reserve account for an Association on a budget.
This solution is not GAAP compliant; reserves should be an asset account. Buildium's budget capability does not currently track asset transfers. We offer this as a work around to meet a specific need presented by our customers.
Set up to track association reserves on a budgetShow
- Navigate to Accounting > Chart of Accounts.
- Click Add account.
- Create an income account called Budget Reserves Income.
4. Create an expense account called Budget Reserves Expense.
Moving money to track association reserves on a budgetShow
This guidance is for this specific goal only. Normally, you'd use another method to transfer money between bank accounts. see "Transfer money between bank accounts"
- Use an "Other Bank Transaction" to take money out of the association's operating bank account. see "Other Bank Transactions"
- Choose Budget Reserves Expense as the offsetting account. Decrease the bank account balance.
- All other attributes of the transaction should match the real world situation.
2.Use an Other Bank Transaction to put money into the association's reserve bank account. see "Other Bank Transactions"
- Choose Budget Reserves Income as the offsetting account. Increase the bank account balance.
- All other attributes of the transaction should match the real world situation.
If you need to move money the other way, reverse the Increase/Decrease options in the Other Bank Transactions.
Things to think about:
- The Budget Reserves Income and Budget Reserves Expense will appear on reports such as the Income Statement, Property Statement, and Budget vs Actuals.
- These two items will "wash out." That is, subtracting the Budget Reserves Expense from the Budget Reserves Income should equal $0.
- At tax time, remember to exclude both the Budget Reserves Income and Budget Reserves Expense from income and expense totals.
Set up a recurring bank transfer for reservesShow
To add a recurring general journal entry:
- Navigate to Accounting > Recurring transactions
- Click Add recurring journal entries.
- Complete the form.
Credit the operating bank account where the funds are being transferred from
Debit the Budget reserves expense account
Debit the reserve bank account where the funds are being transferred to
Credit the Budget reserves income account
