How can I process a multi-year interfund?
  • 17 Jan 2023
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How can I process a multi-year interfund?

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Article summary

The most common way to handle a multi-year Interfund is to create an Interfund grant for the entire multi-year commitment.

Answer:

There are many variations that can be done to handle a multi-year Interfund grant, but the most common is to create an Interfund grant for the entire multi-year commitment.  For this example, let us assume that we are planning on transferring $1000 to another fund each year for 5 years for a total of $5000.
 
  1. Create an Interfund Transaction in the Interfund module for the $5000.  In the wizard the most important thing is to remember to uncheck automatic payment and make sure print check is selected. Click Create Interfund (not Create/Post).

2. Edit the application payment plan to have 5 lines- one for each year of the commitment.

3. Edit the gift to have two entries on the General Ledger tab.  One will be for the first payment of $1000 and the other for the remaining $4000.  The GL accounts for the first $1000 can remain as generated, but the Debit account for the $4000 should be changed to point to a receivable account.

The screenshot below is just an example:

4. When the gift and grant are modified you can post them through to the GL.

5. Process either a real or hand check for the first annual payment in the AP module.  Subsequent year payments can be handled in a similar manner- either a real or hand check.

6. When you process the future year payment you need to either enter a non-gift to record the receipt of the payment and the decrease in the receivable or process a journal entry.  Which option you take will depend on your reporting needs.

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