Microsoft Dynamics GP’s Interfund Management module is often part of the equation for implementing Dynamics GP in not- for-profit entities that have multiple funds or in for-profit enterprises that consist of multiple entities. It’s simple to set up and works with virtually any transaction type. It requires that one segment of the account number string represents the fund or entity. Any time a transaction involves accounts with more than one unique fund/entity segment value, Interfund automatically creates the balancing, or due to/from (DT/F), entries that keep each fund or entity in balance.
When setting up Interfund Management, you have two basic choices: the Treasury method and the Single Due To/From method. In the Treasury method, all transactions between funds flow through the treasury fund. So, even if the treasury fund is not directly involved in a transaction that involves multiple funds, the balancing entries that are created are between each fund in the transaction and the treasury fund. Consequently, each fund has a DT/F balance with the treasury fund and no balance with any other fund. Within the treasury fund, you can set up separate DT/F accounts so you always know what each fund’s balance is with respect to the treasury fund. That works well for a lot of not-for-profit companies that have a general fund. For-profit entities that use Interfund Management would likely opt for the Single Due To/From method. It allows each fund to transact with every other fund without going through the treasury fund. The problem with that, however, is that each fund can have only one DT/F account. So, while the DT/F transactions are automated and the DT/F accounts should net to $0, it’s very difficult to determine what an individual fund’s balance is with respect to any other fund. That’s a serious limitation that either necessitates a lot of manual account analysis or forces companies to look at other solutions to meet their interfund/intercompany requirements.
Fortunately, the developers at RSM have created Advanced Interfund (AI), a customization that solves the single due to/from issue. AI modifies the Interfund Management Setup window to allow the user to enter a set of DT/F accounts to represent each fund’s balance with each of the other funds.
To illustrate, below is the standard Interfund Management Setup window and next to it is the modified window that AI provides:
The key to AI’s functionality is the addition of the Fund Number to Balance field. That field creates the additional hierarchy that facilitates the separation of the fund balances. Once installed and set up, AI functions the same way as standard Interfund Management and supports all of the same transaction types.
If you’d like to learn more about Advanced Interfund or any of our other Dynamics GP products and services, please contact or experts at firstname.lastname@example.org 855-437-7201
by Hans Wulczyn for RSM