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.

 

Environment

 FIMS

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