- Interfund entries are made between funds usually when a debit occurs in one fund and a credit occurs in another fund. For example, revenue might be recorded in a restricted fund while the cash is recorded in the operating fund.
- Interfund entries are required because each fund is a self-balancing set of accounts and, therefore, each fund must be in balance. The interfund entries then use either the transfer or due to/due from accounts to balance the fund.
Configuring Interfund Entries in The Raisers Edge 7:
If the debit and credit accounts for a gift type are in different funds in Records, you need to use interfund entries. (e.g. For Cash Gifts the debit account is 01-13000 and the credit account is 04-41000)
Select Configuration, Interfund Entries (Note: This option is only available if the General Ledger interface has been established already)
The Source Account is always in the fund where the cash account resides.
The Destination Account is in the other fund for the other half of the transaction
To set up an interfund entry for a cash gift that debits the cash account in fund 01 and credits a revenue account in fund 03, enter a description in the Interfund Entry column. Then, enter the source account in fund 01 and the destination account in fund 03. This interfund entry is now available for use in Records.
Using interfund entries within the fund record:
If a gift type debits one fund and credits another, you need to enter an interfund entry in the Transfer column for that gift type. (e.g. For Cash Gifts the debit account is 01-13000 and the credit account is 04-41000)
- Open the fund and select the GL Distributions tab
- Enter the appropriate General Ledger account numbers for that fund record
- In the Transfer column, select the corresponding interfund entry from the drop-down list. These list items are the ones added in Configuration, Interfund Entries. If the one needed is not listed you must go back and add it before saving the fund record.
When you post the gift to General Ledger, the interfund entries specified on the fund's GL Distributions tab are automatically created.