Hello again ACCOUNTS advisors.
I had a question from a user in a church yesterday, which has a Building Fund, and a mortage on their church building. As usual, the mortgage payments are made up of a principal component (which reduces the long-term liability account balance for the mortgage) and an interest expense component.
She was hoping that the principal component would reduce her Building Fund balance, but of course it doesn’t, because in my design only income and expense accounts can be linked to fund accounts. (The interest component would of course reduce the Building Fund balance, because its account would be linked to the Building Fund account.)
In some ways I can see what she is thinking. If $1,000 has been donated to the Building Fund, to help pay the mortage payments, and an $1,000 mortgage payment is then made (perhaps composed of $100 principal and $900 interest), one might indeed expect the Building Fund balance to be reduced by that $1,000, since the money was spent.
Does anyone have any bright thoughts on either how to explain why this is not appropriate, or how to make it happen in terms of what the splits on the transaction could be? I’m afraid that I don’t.