Bank Transfers When Using Different Funds
Kevin was recently asked this FUND question, “How can I transfer money between Bank Accounts that have different FUND’s listed in the Bank Reconciliation module, so that the transaction will show up in GL correctly?”. Here is how you set up for this situation:
- Usually our nonprofit customers will have only one main FUND that is a General or Administration account. They would NOT need this solution just “due to/due from” on in Module Preferences with there ADMIN code in the GL box: (see below) All accounts would use the “Auto due/to” as the General fund.
- Now, here is where the customer who has “separated” FUND’s that are in BR, to reconcile each as a Bank Account, but with “Auto due to/from” on in each FUND. This is how you can set it up correctly: First go to the General Fund and change the status to “Restricted” just temporally.
- Now with this done, go to Bank Reconciliation module and go to options and turn off the” Auto Due to/From”.
- Now go into your transfer of money between accounts. You will see we have a new Fund to Fund transfer radio button:
- Now go back and change the General Fund to “Due to/from” in the Set up fund in GL Module. Now every time you transfer monies from one Fund Bank (Account) to another you will be able to transfer directly into the Cash account in the GL.
- For example we are transferring money from the Bank Account (REG checking) to our Investment Company (INV). Use your lookups to make sure accounts are there. The REG account number comes from the Cash in bank Line:
- Notice we are moving money in the 1010-010-01-(100) fund of the REG Bank account. In this example you can see that the Fund account (suffix) is not shown as a section on the Bank Checking Account. In our example we want to transfer to another Bank (Fund) which has its own account number:
- In the example, notice we want to move the $25.00 to INV Bank (Fund) and its Number is 1020-010-01-(300). The 300 is a different Fund than the 100. In the transfer the GL account will hold the Due from account in the REG account. (I.E. Assets -1999-010-01-100). Look to the 100 Fund and see the First line of the Due To/From accounts.
- And now put in your Funds as transferring from an to, The 100 is for the REG account and the 300 is for the INV account as funds. :
- When you Print/Edit the transaction also select “Print Impact Summary Report.” You will be able to check to see if the money is being transfer right in Bank Accounts (FUND’s) and if the right accounts are being used.
- Bank Accounts above and GL accounts below as the Print Account Impact Summary.
- And finally, once the first transfer is done you may go back to your FUND account “set up fund” and turn the transfer type back to “due to/from”. The line in BR will remain.
Kevin
System Trainer
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