Funds

A fund is a self-balancing set of accounts. Use funds to group accounts by activity, donor-imposed restrictions, or objectives. In Financial Edge NXT, you can add and edit funds, define transaction requirements, record interfund accounts, and lock beginning balances.

Tip: The fund code is the first account-number segment by default. You can move it to another position in your account structure.

A fund record includes its ID, description, and transaction requirements. You can also add notes and alerts, review fund history, and lock beginning balances. To configure fund-level transaction requirements, see Transaction Codes.

To add or edit funds and lock beginning balances, from Settings, select General ledger, then select GL setup and Funds.

Add Funds

1. From the Funds list, select Add.

2. Enter the Fund ID and description.

3. Review Transaction requirements. Characteristic and Type provide information only.

4. Select Preserve details during closing for each characteristic whose details you want to carry forward when you close the fiscal year. Use this setting to distribute characteristic details to net asset accounts during closing.

5. Select Require to balance for each characteristic that must balance transaction debits and credits.

6. Under Required on accounts specified, select the accounts or income statement accounts that require the characteristic.

7. In Default, select a default entry for each characteristic. Characteristics marked Require to balance need a default, except Segment. You can change a default later.

8. Select Save or Save and close.

Edit Funds

Note: Changes to transaction requirements on locked funds can affect financial reports.

1. From the Funds list, select Edit for a fund. You can also select Edit from an open fund record.

2. To change where the net surplus or deficit is distributed, update Fund balance account. Distribution follows the characteristics marked Preserve details during closing.

3. Under Interfund accounts, specify the accounts used to create balancing interfund entries in Journal Entry. Select Single account to use one interfund account. For more about balancing activity across funds, see Interfund Sets.

4. Select Save or Save and close.

Note: To delete a fund, open its record and select Delete.

Lock Beginning Balances

Locking beginning balances clears and locks balances at zero. You must lock beginning balances for a fund before you can post transactions.

Before you lock beginning balances, confirm that each fund has a designated fund balance account.

Note: You can't undo this action. Back up your database first so you can restore it to its previous state if needed.

1. From the Funds list, select Lock beginning balances. Select each fund to lock, then select its fiscal year and period.

   Tip: You can lock beginning balances for multiple funds at the same time.

2. After you select the funds and periods, select Lock.