that has a cash account, identify every other fund that could possibly use that cash account. (If you use only one cash account, this will likely be every fund in your agency except the one that has the cash account.)General Ledger’s automatic interfund balancing feature uses interfund accounts, sometimes known as “due to / due from” accounts, to make the adjusting entries that keep your funds in balance when one fund uses a cash account belonging to another fund. (See the Interfund Balancing appendix to this manual.)
To take advantage of this feature, you must first plan and set up these interfund accounts in the General Ledger program.
You will always define interfund accounts in pairs, one “due to” and one “due from.” Generally, a fund that contains a cash account will have one “due to/due from” pair for each other fund that uses its cash account. Each of the other funds that uses the cash account will have one “due to/due from” pair relating it to the fund containing the cash account.
Below is a step-by-step guide to planning your interfund accounts.
| 1. | Identify how many cash accounts you will have and the fund to which each will belong. Each cash account must be assigned to a fund. We recommend having only one cash account and assigning it to a revolving fund. If you have more than one cash account, we recommend assigning your primary cash account to the revolving fund. |
Hint: Tenmast recommends using only one cash account, but the program allows you to use more, if you wish.
| 2. | For each fund that has a cash account, identify every other fund that could possibly use that cash account. (If you use only one cash account, this will likely be every fund in your agency except the one that has the cash account.) |
| 3. | Identify the interfund accounts for the fund that has the first cash account. You will define one due to / due from pair of accounts for each of the other funds that will use this fund’s cash account. |
- The “due from” side of the first pair will identify the same fund and the line item of its accounts receivable account (usually 1129: Accounts Receivable - Other).
- The “due to” side of the first pair will identify the first other fund and the line item of its accounts payable account (usually 2119: Accounts Payable – Other).
| 4. | Repeat step three for each additional fund that has a cash account used by other funds. |
| 5. | Perform step three for each fund that uses another fund’s cash account. A fund without a cash account will have one “due to / due from” pair for each other fund whose cash account it uses. |
For help on setting up your interfund accounts, See "Adding Interfund Accounts".
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