Fund Balancing Options

Modified on Mon, 16 Jan 2023 at 05:18 AM

An unlimited number of Funds can be created in Fundamentals, with at least one being required.

Each fund has a distinct purpose and its accounts are balanced automatically within the system.  Funds may be used to segregate sources of money such as general/operating, endowments, trusts, grants and other special designations.  Funds are critical to create reporting and accountability to explain how money is being spent within the organization to meet stated missions and goals.  Grants may also be defined as a separate Dimension, depending on the organizations reporting needs.

The Fund Class Code is used in nonprofits to report as unrestricted, temporarily restricted or permanently restricted based on the funding source's time or usage restrictions.  In governments, the Fund Type Field may be used to categorize between General, Special Revenue, Capital Project, Debt Service and Permanent fund groupings.

Traditional v. Distributed Decision

One of the most important decisions that you will make is the configuration settings of Traditional or Distributed on the this page.

Traditional - The Traditional configuration would typically be appropriate if you are using inter-fund relationships and due to/due-from accounts on the Statement of Financial Position. In this configuration, most balance sheet activity is in one fund because A/R and A/P activity (including posting checks) happens in one fund even though the revenue and expense activity occurs in other funds. The fund for AR and AP control entries can be from a system-defined fund number, or from a fund specified by vendor or document. The fund for a bank can be from the system default or from the Bank Account Card.

Distributed -The Distributed configuration generally does not produce inter-fund entries (that is, no due-to/due-from entries). For example, when a purchase invoice is posted, the debit to expense and the credit to A/P all happens in the same fund. When the invoice is paid, the debit to A/P and credit to the bank account happens in the same fund. Since all activity happens within the same fund, it’s possible to produce balance sheets and income statements for that fund. Please note that due-to and due-from transactions will be created when entering journals which cross funds within the same Document No. While the fund for the AR and AP entries will be derived from the sales or purchase line, the fund for the bank entry may also be derived from a system default or from the Bank Account Card.

Bank Fund Options - the fund number for the bank entry can be derived from the system default, the Bank Account Card or from the AR or AP distributed entry.

Please review the tooltips on each field for further in formation.

The  Reporting Fasttab is used to activate the out-of-box financial statements which can be run from the main role center.

The Dimensions Fasttab is used to define the dimension to be assigned to interfund transactions

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