1 REF Receives Asset

1
-1- REF Receives Asset
The Real Estate Foundation receives title to a
piece of property, consisting of building and
land, with an appraised value of 5,000,000.
Note that we should have used a gift income G/L
not a gain. 2899999 is a Generic Gift IO.
2
-2- Expenses Incurred-Paid by CUR
The Foundation incurs expenses of 14,000 in
preparing the property for sale.
2732257 is IO in CUR for a Specific Property.
Note it should not settle
3
-3- Expenses Transferred to REF
Inter-company transfer, doc type SX, to transfer
expenses from CUR IO to REF RE object. Requires
creation of transfer GLs 950008 Intercompany
Clearing Liability for REF, and 950007
Intercompany Clearing Receivable for CUR.
Note Kyriakos suggests, for ease of finding these
transactions, we always begin with REF. 2732257
is IO in CUR for a Specific Property. Note it
should not settle
4
-4- Asset Sold by REF
The property sells for 5,015,000.
5
-5- Net Proceeds Transferred to CUR
The net proceeds of 5,001,000 (5,015,000
14,000) are transferred as a gift from the
Foundation to MIT.
1180000 is a CUR Generic Gift IO and 2899999 is a
REF Generic Gift IO.
6
REF Cash (asset)
Cash 100530
(4) 5,015,000
5,015,000 (5)
7
REF Asset (asset)
Asset 170000
(1) 5,000,000
5,000,000 (4)
8
REF Due to MIT (liability)
Due to MIT 950008
14,000 (3)
(5) 14,000
9
REF Generic Gift Internal Order (cost collector)
Balance will be the gain on the sale (debit)
Generic Gift IO 2899999
Gift Income 801047
Transfer gift to MIT 800100
5,000,000 (1)
5,000,000 (1)
(5) 5,001,000
(5) 5,001,000
Note that we should have used a gift income G/L
not a gain G/L in transaction 1.
10
REF Real Estate Object (cost collector)
PR REF/RE00/RE000001
Debit
Credit
Balance will be the gain on the sale (credit)
Real Estate Object RE000001
Materials Serv 420226
Gain from Asset Sale 801047
(3) 14,000
(3) 14,000
15,000 (4)
15,000 (4)
11
CUR Cash
Cash 100530
14,000 (2)
(5) 5,015,000
12
CUR Due from Foundation
Due from Foundation 950007
(3) 14,000
14,000 (5)
Note that if they wish to see the detail
transactions on 950007, then we need to set this
G/L for line item detail.
13
CUR Specific Property Internal Order
Specific Property IO 2732257
Materials Serv 420226
(2) 14,000
(2) 14,000
14,000 (3)
14,000 (3)
14
CUR Generic Gift Internal Order
Balance will be total net proceeds
Generic Gift IO 1180000
Unrestricted Gift 800303 (could be restricted)
5,001,000 (5)
5,001,000 (5)