Funds

A fund is a self-balancing set of accounts. Use funds to separate accounts into groups specific to certain activities, donor-imposed restrictions, or objectives.

Tip: When you define your account structure, the fund code is by default the first segment of an account number, but you can move it into any position.

The fund record displays information about a fund, such as fund ID, description, and transaction requirements. From the fund, you can lock beginning balances. You can also add notes and alerts to the fund, and view fund history.

You can add and edit funds, and lock beginning balances under General ledger, Settings, GL setup, Funds.

  1. From the Funds list page, select Add.

  2. Enter the Fund ID and description for the fund.

  3. Review the information under Transaction requirements. The Characteristic and Type columns are for informational purposes only.

  4. To close the fund to a net asset account and distribute information by fund characteristics when closing the fiscal year, mark Preserve details during closing for the characteristic. If not marked, information for the characteristic is not carried forward when you close the fiscal year.

  5. To require the transaction’s debits and credits to balance by a fund characteristic, mark Require to balance for the characteristic.

  6. To require the characteristic on specific accounts or income statement accounts, make your selection in the Required on accounts specified column.

  7. In the Default column, you can select a default entry for the characteristic. Defaults are required on all characteristics marked Require to balance (except Segment), but you can change the default entry at any time.

  8. Select Save or Save and close.

Note: When editing locked funds, any changes to transaction requirements might affect information presented on financial reports.

  1. From the Funds list page, from the context menu of a fund, select Edit. You can also select Edit from an open fund record.

  2. When you edit a fund, you can change the Fund balance account. The net surplus/deficit will be distributed to the Fund balance account based on the characteristics marked Preserve details during closing.

  3. Under Interfund accounts, specify which accounts to use when creating balancing interfund entries in Journal entry. To use only a single interfund account in journal entry, select Single account.

  4. Select Save or Save and close.

Note: To delete a fund, open the fund record and select Delete on the action bar.

When you lock beginning balances, all balances are cleared and locked at zero. You must lock beginning balances on funds in order to post transactions.

Before locking beginning balances, verify each fund has a designated a fund balance account.

Note: Once you lock beginning balances, you cannot undo the process. Having a backup allows you to restore the database to the state it was in before locking beginning balances.

  1. From the Funds list page, select Lock beginning balances. From the Lock beginning balances screen, mark the checkbox next to the fund you want to lock. When you select the fund, you can then select the fiscal year and fiscal period for the fund.

    Tip: You can lock multiple funds at once by using the checkboxes on the left.

  2. Once you've selected the funds to lock, select Lock.