Error: This GL Account is a Fund Balance Account, Normally you should not Create Entries when Posting Journal Entries to a Fund Balance Account

When posting journal entries directly to a fund balance (Q) account, the error will occur.

This error typically occurs when journal entries are made directly to a fund balance account (Q account). It is not recommended to post directly to Q accounts as reports and other utilities in FIMS do not take into account any activity posted to them.

What we do recommend is when you are moving money between fund balances within the same fund would be doing a journal entry using the transfer accounts. Here is an example of how that would look below:

EXAMPLE: You have 3 fund balance accounts Q1, Q2 and Q3.

Q1 has a balance of $100,000.

Q2 has a balance of $20,000.

Q3 has a balance of $5,000.

Your total fund balance is $125,000. You need to move $5,000 from Q2 to Q3.

The journal entry would be: Debit a transfer account (T2) for $5,000 and credit a transfer account (T3) for $5,000.

After you post the journal entry, your total fund balance is still $125,000 and the individual fund balances have been redistributed as follows:

Q1 has a balance of $100,000.

Q2 has a balance of $15,000.

Q3 has a balance of $10,000.

If you wants to post to the fund balance accounts directly, against recommendations, then there is a setting that will allow you to do so. 
Go to Tools > System Utilities > System options. 
Select Section: GL
Select Option: Warning_for_Posting_To_Fund_Balance_Account
Select Value: Yes. 
Changing this will mean the user will get a warning instead of an error and it will allow the user to post to the balance accounts. We recommend that the user change the setting back to No after posting is done.




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