When to use Transfer Accounts between funds and how

[TammyC]

We have one checking account and multiple funds.

I am confused when to use the Transfer Account numbers (9000 accts) and how the entries are to be done. Please give scenario and detail transactions, please.

[NeilZ]

We have one checking account and multiple funds.

I am confused when to use the Transfer Account numbers (9000 accts) and how the entries are to be done. Please give scenario and detail transactions, please.

You would only use Transfer Accounts if you are moving funds showing under one Fund to another Fund.

For instance. You have funds in your Endowment Fund (20- fund) that you redeemed from a mutual fund. The money that comes in must first be reflected in the Endowment Fund as a reduction in the mutual fund asset amount, and an increase in the checking account.

You need to transfer these funds to the building Account (13-), and this must be reflected on the Income & Expense report as an internal transfer.

You would then transfer funds from the 20-1110-000 checking to the 13-1110-000 checking

It would look something like this:

20-1110-000 checking CR 1000.00
20-9010-000 transfer to DB 1000.00
13-1110-000 checking DB 1000.00
13-9510-000 transfer from CR 1000.00

This will then show on the I&E report (as well as the Accounting Funds Balance) report as a transfer out of 20 and in to 13.

Does this help ??

[TammyC]

So, I would also use this if I am cleaning up fund balances that are reported incorrectly?

[NeilZ]

So, I would also use this if I am cleaning up fund balances that are reported incorrectly?

Well ... if you're showing more in one fund, and the excess should be reflected in another fund. Yes.

However, what are you using to make that determination? That makes a difference.