Automatic Cash Entries

Automatic Cash Entries is a cash call utility that facilitates intrafund transfers of cash between G/L asset accounts. You can use for cash transfers between any two asset accounts for a group of Funds, but it was originally designed for the following purposes:

• To move cash out of each Fund’s pooled asset account and into the same Fund’s checking account to cover Grant payments (if the checking account is not part of the pool).
• To move cash deposited into a Fund’s checking or other non-pooled holding account into the Fund’s pooled asset account.

Move Cash from a Pooled Asset Account to a Checking Account

Note: Before you run this process, make sure you pay Grants in Accounts Payable and post the resulting General Journal entries. The accounts that represent each Fund’s balance in the checking account will automatically be credited. Since balances in these accounts are kept low (or at zero), the credit entry will probably result in a credit balance.

Note: Because Cash Call is based on period end balances, you should run it each time you pay Grants in order to get the most equitable allocation in FACTS. You should ideally use this procedure to drive your actual, physical bank transfers. The report will tell you how much money should be transferred to cover the Grant checks.

1. In the General Ledger module, click the Journal Entry supertab, and then click the Automatic Entries tab.

2. Select Automatic Cash Entries from the Automatic Entries list, and then click the Run Process button. The Automatic Cash Call Routine window opens.
Automatic Cash Call Routine Window

3. Enter the Fiscal Year and Period when you want to run the transfer.

4. In the Transfer To Account field, enter the natural account number for the checking account.

5. In the Transfer From Account field, enter the natural account number for the investment pool account.

6. In the Increase Funds with Balances Less Than field, enter the lowest Debit account balance that does not require a transfer. The default value is 0.00 and does not usually need to be changed.

7. In the Replenish Funds to a Balance Of field, enter the balance that the Credit account should be returned to after the transfer. The default value is 0.00 and does not usually need to be changed.

NOTE: The balances in the Increase Funds and Replenish Funds fields will usually be the same.

8. If you only want to transfer money if the Fund can afford it, select the Transfer Only if There is a Sufficient Amount in the Credit Account checkbox. If you want to transfer the cash regardless of whether there is enough money in the credit (Pool) account, clear this checkbox.

NOTE: If you select this checkbox, it is possible that nothing will be transferred for a Fund that is short by a single penny on a $10,000 Grant. You may wish to run a trial balance on the checking account either before or after running the Cash Call routine to insure that you do not exclude any necessary Funds.

NOTE: If you clear this checkbox and there is not enough money in the Pool to cover the Grant for a particular Fund, the Pool Balance will become negative. This may or may not be an issue, depending on your organization’s policies.

9. Clear the Transfer Entire Amount from Credit Account checkbox.

10. If you reconcile your checking account via Accounts Payable Reconciliation, select the Post Deposit Amount to Check Reconciliation checkbox to create a summary transaction in for check reconciliation.

11. Click OK. The Fund Selection Criteria window opens.

Fund Selection Criteria Window

12. (Optional) Use the fields on this window to select Fund codes to filter the Funds that you want to review for possible transfers.

13. Click OK.

14. Verify the Send To destination, and then click the Run Report button. The Automatic Cash Entries report opens in the FIMS Viewer.

Automatic Cash Entries Report

15. Click Create G/L Entries on the FIMS Viewer menu bar. The Debit and Credit Information window opens.

Debit and Credit Information Window

16. In the Journal Key fields, enter the Journal Key code that you want to apply to the Debit and Credit entries (for example, DP to indicate a disbursement from a pool).

NOTE: Using a Journal Key code of DP will translate to a DsbP Transaction Type code in FACTS, which will correctly categorize the transactions.

17. (Optional) Enter a Reference number for the Journal entry.

18. Enter the Apply Date for the transfer.

19. (Optional) Enter the FACTS Confirm Date for the transfer.

20. Click OK.

21. Run the G/L Edit report and post the entries.

Move All Cash from a Holding Account to an Investment Account

NOTE: Before you run this process, post your Gifts as usual and then post the associated General Ledger Journal entries. The General Ledger Asset account for the recipient Funds will automatically be debited when you post the entries.

NOTE: If you use the Grant checking account as the Gift holding account you can run Cash Call twice (To and From checking), in order to bring checking for each Fund to a zero balance. For any specific Fund, the transfer amount will only be one way: the net of Grant payments and Gifts. In that situation, you should leave the Journal Key Code at the default (CC), which will translate as a TranType of MscP (Miscellaneous) in FACTS.

1. In the General Ledger module, click the Journal Entry supertab, and then click the Automatic Entries tab.

2. Select Automatic Cash Entries from the Automatic Entries list, and then click the Run Process button. The Automatic Cash Call Routine window opens.

Automatic Cash Call Routine Window

3. Enter the Fiscal Year and Period when you want to run the transfer.

NOTE: The Debit balance as of the end of the selected Period determines the transfer amount.

4. In the Transfer To Account field, enter the natural account number for the investment pool account.

5. In the Transfer From Account field, enter the natural account number for the checking account.

6. Leave the default values in the Increase Funds with Balances Less Than field and the Replenish Funds to a Balance Of field (should be $0.00).

7. Clear the Transfer Only if There is a Sufficient Amount in the Credit Account checkbox. This will ensure that the cash will be transferred regardless of whether there is enough money in the credit account.

8. Select the Transfer Entire Amount from Credit Account checkbox.

9. Click OK. The Fund Selection Criteria window opens.

Fund Selection Criteria Window

10. (Optional) Use the fields on this window to select Fund codes to filter the Funds that you want to review for possible transfers.

11. Click OK.

12. Verify the Send To destination, and then click the Run Report button. The Automatic Cash Entries report opens in the FIMS Viewer.

Automatic Cash Entries Report

13. Click Create G/L Entries on the FIMS Viewer menu bar. The Debit and Credit Information window opens.

Debit and Credit Information Window

14. In the Journal Key fields, enter the Journal Key code that you want to apply to the Debit and Credit entries (for example, GP to indicate a gift to a pool).

15. (Optional) Enter a Reference number for the Journal entry.

16. Enter the Apply Date for the transfer.

17. (Optional) Enter the FACTS Confirm Date for the transfer.

18. Click OK.

19. Run a G/L Edit report and post the entries.