An interfund transfer is one way of moving money from one fund to another. For our purposes, the dollars are granted from one fund and received as a gift to another fund.
For this process to run properly, be sure the Account Settings are correct. See the end of this document for the setup instructions for Account Settings.
Process
You can access the Interfund Grants entity from any of the three main workplaces. Look in the Extensions area at the bottom left of your screen.
Create a New Interfund Grant
- Click on +New
- This brings up a new Interfund Grant data entry form. Notice there is a Business Process Flow attached to this form (The targets across the top of the form). It is imperative that you use this flow, and that as you proceed from stage to stage, you click the Next Stage button.
- Fund Information stage: A form will appear under the target. Fill in the fields accordingly: The Interfund Grant Date indicates the date the transfer affects the ledger (accounting). Once the fields are entered, click save. This creates the new Interfund record and fills the interfund No. field in with the unique identifier for that record. Go back to the Fund Information target, there will be a Next Stage button. Proceed to the next stage.
- Grant/Gift Information Stage: Fill in the fields accordingly and click Next Stage.
- Accounting Information Stage: fill in the fields accordingly and click next stage. The Grant Memo and Gift Formal Acknowledgement fields will pull in from the previous stage; the Grant Title and Donor, respectively.
- The next stage will fill in unique IDs for the Interfund Request, Interfund Request Payment, Interfund Gift, and Interfund Gift Payment records. Click Next Stage.
- Send to Accounting: Click the Send to Accounting button in the upper toolbar and click next stage. If successful, the folio will show as Paid. Click next stage again. If successful, you’ll be taken to the Confirm Interfund stage, confirm all the information looks correct and click Finish.
A series of entries take place in the G/L – the word ‘Interfund’ is noted in multiple places (Document No., Gift/Request, Payment No.) so they are easy to find with a filter. The payment will travel through Business Central as such:
- The transfer amount will go into and out of the Accounts Payable account you listed in Account Settings (see Setup section below).
- The transfer amount will go into and out of the Accounts Receivable account listed in Account Settings.
- You will see a Debit to the Expense Account and Fund you indicated in the Grant information and a Credit to the Gift Account and Fund you indicated in the Gift information.
Once the transactions are processed in accounting, information will be written back to the Folio field in Interfund Grants.
Setup
akoyaGO will assist you with the initial setup of this feature. You can follow the steps below to make changes.
1. In the Fund Management workplace, select Accounting Settings:
2. There should already be an Account Setting called Business Central, edit that entry.
You’ll see four sections in your Accounting Settings – Accounting Settings, Gift Defaults, Grant Defaults, and Net Asset Accounts. Notice that in the Gift and Grant settings, there are several fields for interfund defaults. You can leave these fields blank if, for example, you use more than one spendable account. But if you choose to fill in these default amounts, they will auto populate upon creation of gift and grant payments. This saves you from having to fill in the accounts each time. Below, we will review each field and what it will be used for.
Accounting Settings:
General Fund: The General Fund/ Operating Fund used for all auto-balance and reapportioning in accounting processes. Standard = 00001
Notification Recipient: The person who will get notified for Interfund activity.
Interfund Payee/Payor: The donor that will get accounting credit for all interfund grant and gift payments. A soft credit donor is available from the Interfund Grants form. This should be your Foundation's donor record.
Fundweb Contact: If you utilize Fundweb, this is the person who will show as “From” on emails generated from Fundweb.
Gift Defaults:
Default Gifts Receivable Account: your default accounts receivable account; if you have a separate account for Gifts Receivable, use that account number.
Default Pledge Receivable Account: This is the account that will be used if the gift type is a pledge.
Default Endowed Gift Account: This is the account that will be used if the fund chosen is endowed.
Default Non-Endowed Gift Account: This is the account that will be used if the fund chosen is not endowed.
Default Interfund Endowed Gift Account: When the gift type is interfund, this is the account that will be used if the fund chosen is endowed.
Default Interfund Non-Endowed Gift Account: When the gift type is interfund, this is the account that will be used if the fund chosen is not endowed.
Default Gift Function: This is the function that will be assigned to all gift payments.
Grant Defaults:
Default Grants Payable Account: your default accounts payable account; if you have a separate account for Grants Payable, use that account number.
Default Scholarship Payable Account: This is the payable account that will be used if the request type is scholarship.
Default Program Expense Payable Account: This is the payable account that will be used for program expense.
Default Grant Expense Account: This is the account that will be used as the expense account.
Default Scholarship Expense Account: This is the expense account that will be used if the request type is set to scholarship.
Default Program Expense Account: This is the account that will be used for program expense.
Default Interfund Expense Account: If the gift type is interfund, this is the expense account that will be used.
Default Grant Function: This is the function that will be assigned to all grant payments.
Net Asset Accounts:
Spendable Net Asset Account: The organization's spendable net asset account. Typically, 3000. Leave this field blank if you do not want net asset sweet to occur automatically.
Accumulated Earnings Net Asset Account: The organization’s accumulated earnings account.
Net Asset Sweep: On or Off. If on, net asset sweep will run nightly, or after reapportioning or JIA.
workflow
A workflow exists that will convert a Request Payment into an Interfund Grant. You will run the workflow from the Request Payment record.
Please note, you need to run this workflow before the Request Payment is sent to accounting. If it has already been sent to accounting, the workflow will not process properly.
1. Choose the payment you’d like to convert from the Payments and Requirements entity, then choose Flow from the Request Payment record toolbar:
2. Select Run Workflow “Convert to Interfund Grant”:
3. A popup will appear to confirm that you want to run the workflow, click OK.
The workflow will run in the background to create an Interfund Grant record and pull in all the information from the Payment record. From there, you can follow the business process flow across the top to process the Interfund Grant as described above.