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Chapter: General Ledger Activities > Balance Adjustments >
5.1.2. Balance Adjustment Examples
Examples of Common Balance Adjustments
Example 1: How to Account For Bank Fees
*Note: Please remember that your category names may be different from the ones in the example
1.Date the adjustment for the date monies were taken out of your bank account.
2.Adjust your bank account in the first Category line and choose “Decrease”, enter the amount your account decreased.
3.In the section below marked “Category”, enter the appropriate expense category for your Bank Fees.
*Note: Make sure the amount below matches the initial amount you decreased your bank account with.
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Example 2: How to Account for Bank Interest
*Note: Please remember that your category names may be different from the ones in the example
1.Date the adjustment for the date monies were deposited into your bank account.
2.Adjust your bank account in the first Category line and choose “Increase”, enter the amount your account increased.
3.In the section below marked “Category”, enter the appropriate income category for your Bank Interest.
*Note: Make sure the amount below matches the initial amount you increased your bank account with.
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Example 3: How to Increase your Carry Over/Restricted Funds
*Note: Please remember that your category names may be different from the ones in the example
1.Date the adjustment for the date you wish to show the increase to your Carry Over/Restricted Funds.
2.Adjust your Carry Over/Restricted Funds Category in the first Category line and choose “Increase”, enter the amount your account increased.
3.In the section below marked “Category”, “Fund Balance” will automatically populate. This is a preset Category, and cannot be changed. Make sure to mark the amount your account increased.
*Note: Make sure the amount below matches the initial amount you increased your Carry Over/Restricted Funds with.
*Note: “Fund Balance” already exists in your myPTEZ Category List. You should NOT add a new Category for “Fund Balance” or make changes to this Category. You will rarely touch this category, except in special cases like increasing/decreasing Carry Over/Restricted Funds.
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Example 4: How to Decrease your Carry Over/Restricted Funds
To decrease your Carry Over/Restricted Funds, follow the steps 1 – 3 of the previous example, but choose “decrease” on the Increase/Decrease toggle.
Example 5: Transferring Money from An Expense Category to Another Expense Category
*Note: Please remember that your category names may be different from the ones in the example
1.Date the adjustment for the date you wish to show the changes to your expense categories.
2.Adjust your expense category you’d like to move balances from in the top Category line, and choose either increase or decrease on the Toggle.
3.Below in the second Category section, choose the other expense category you are adjusting, for the same amount.
*Note: When adjusting between expense categories there are a few things to keep in mind:
When you want to show more in Expense, you will Increase the expense category.
When you want to show less in Expense, you will Decrease the expense category.
When the expense category you are adjusting is increased, it will decrease the offsetting (second/below) expense category.
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Example 6: Transferring Money from An Income Category to Another Income Category
To transfer funds between your Income Categories, follow the steps 1 – 3 of the previous example, but choose the correct income categories in the Category fields.
*Note: When adjusting between income categories there are a few things to keep in mind:
When you want to show more in Income, you will Increase the income category.
When you want to show less in Income, you will Decrease the income category.
When the income category you are adjusting is increased, it will decrease the offsetting (second/below) income category.
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Example 7: Automatic Withdrawal/Cash Box Withdraw
*Note: Please remember that your category names may be different from the ones in the example
1.Date the adjustment for the date you withdrew the money for your Cash Box.
2.Adjust the bank account you withdrew money from in the top Category line, and choose decrease on the Toggle.
3.Below in the second Category section, choose your Cash Box asset category, and adjust it for the amount going into your cashbox.
*Note: Cash Box categories should be set up as an Asset on your Category List.
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Example 8: Automatic Deposit/Cash Box Return
*Note: Please remember that your category names may be different from the ones in the example
1.Date the adjustment for the date you deposited the money into your bank account.
2.Adjust your bank account in the top Category line, and choose increase on the Toggle.
3.Below in the second Category section, choose your Cash Box asset category, and adjust it for the same amount.
*Note: Cash Box categories should be set up as an Asset on your Category List.
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Example 9: NSF Check
*Note: Please remember that your category names may be different from the ones in the example
1.Date the adjustment for the date the NSF shows on your Bank Statement.
2.Adjust your bank account in the top Category line, and choose decrease on the Toggle.
3.Below in the second Category section, we may need multiple offsetting categories. First, create a line item for the original income category the initial transaction was going to. Then, add a second line item for Bank Charges- NSF if there are any bank charges for the NSF.
*Note: myPTEZ has a built in NSF Check module. This module allows you to record NSF Checks that only need to deduct income from a single income category. If you must deduct income from multiple categories, then you should use an Adjustment to reflect the multiple income categories being decreased.
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Example 10: Transferring Money Between Bank Accounts
*Note: Please remember that your category names may be different from the ones in the example
1.Date the adjustment for the date the transfer was made.
2.Adjust the account the funds were transferred to above, and choose Increase on the Toggle.
3.Below in the second Category section, choose the bank account the funds were transferred from, for the same amount of the transfer.
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Example 11: Transferring from Membership Dues to Membership Pass-Through Income
*Note: Please remember that your category names may be different from the ones in the example
This example will show you how to move funds from your Membership Dues to your Membership Receipts Pass-Through Category in case you forgot to record them in initially, or record them at once and want to make the transfer after.
1.Date the adjustment for the date the receipts were recorded.
2.Adjust the Membership Dues category the funds are currently in, and choose decrease on the Toggle.
3.Below in the second Category section, choose the Membership Receipts Pass-Through category the funds are going to, for the same amount.
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Example 12: Transferring Web Store Funds
*Note: Please remember that your category names may be different from the ones in the example
1.Date the adjustment for the date money was deposited into your bank account.
2.Adjust the bank account category, and choose increase on the Toggle.
3.Below in the second Category section, choose the your undeposited funds category the funds are currently in, for the same amount.
*Note: The Undeposited Funds account used for your web store will be listed in Our PTA > Payment Processors. It will most likely be named Pay Pal Funds, and is an Asset type.
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Example 13: Transferring Non-Web Store PayPal Transactions (Including Fees)
*Note: Please remember that your category names may be different from the ones in the example
This example will show you how to move funds from your Membership Dues to your Membership Receipts Pass-Through Category in case you forgot to record them in initially, or record them at once and want to make the transfer after.
1.Date the adjustment for the date the receipts were recorded.
2.Adjust the Membership Dues category the funds are currently in, and choose decrease on the Toggle.
3.Below in the second Category section, choose the Membership Receipts Pass-Through category the funds are going to, for the same amount.
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14. Accounting for Square Income (including fees)
*Note: Please remember that your category names may be different from the ones in the example
This example will show you how to move funds from your Membership Dues to your Membership Receipts Pass-Through Category in case you forgot to record them in initially, or record them at once and want to make the transfer after.
1.Date the adjustment for the date the receipts were recorded.
2.Adjust the Membership Dues category the funds are currently in, and choose decrease on the Toggle.
3.Below in the second Category section, choose the Membership Receipts Pass-Through category the funds are going to, for the same amount.
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