How do I reverse or adjust an interfund transaction?

The Interfund transaction is made up of a Gift and a Grant;  both will need to be adjusted when the original transfer amount is being modified

For example, you processed an Interfund transaction of $5,000 from the Whitelaw Fund to the Operating Fund. The Whitelaw fund holder changed their mind and wishes to transfer only $4,000. To fix this you do the following:

1. Void the payment in Accounts Payable, but do not create a Debit Memo.
2. Run the Grant Adjustments process in the Grants module. Check the Amount Correction radio button.
3. Enter $4,000 on the New Amount line item below. 
4. Process the adjustment and verify information on the report.  If everything is correct, select Commit Changes.
5. A Debit Memo will be created to adjust the Open Item. Note: You must post the Debit Memo in AP to modify the open item.
6. Process a new hand check using the original check number and date to complete the process and "pay" the open item..
7. Do a Gift Adjustment to reduce the Gift to Operating from $5,000 to $4,000, and post.

The Amount Correction fixes the Grant Amount in Application History (the debit memo fixes the General Ledger for the Grant side from Whitelaw Fund) and the Gift Adjustment fixes Gift History and GL journals for the Operating Fund. For more information on doing Grant Adjustments, refer to the Grant Adjustment Helper , or FIMS Help.

Depending upon your reporting needs, a partial grant cancellation could be done in place of an amount correction. The steps remain essentially the same.

It might also be necessary to change the idcodes (or funds) associated with the gift or grant.  Normal Gift or Grant adjustments would be done in the respective modules.  

Once an Interfund has been posted through, adjusting it requires making normal adjustments to either or both of the transactions.  In some cases only one side will need adjustment ( i.e. an incorrect idcode chosen).  Changes with respect to the dollars transferred typically require an adjustment to both the gift and the grant.