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Explore Accounting Principles

Cross Funds, Departments, or Other Account Parts

Crossing account parts occurs when you debit one chart of accounts and credit another. You may cross funds, departments, or other account parts deliberately or accidentally.
Tip: The Crossing Account Part Report displays a list of transactions that cross funds, departments, or other account parts.

For example, let's say we have one fund set up for Parish accounts and another for School accounts. Accounts added to a chart of accounts or a fund are used for that fund only. Normally when entering a transaction, you debit and credit accounts that are assigned to the same COA.

However, if you debit an account assigned to the Parish Fund and credit an account assigned to the School Fund, you are "crossing funds". This causes each fund to be out of balance, and you need an adjusting journal entry to keep your books in balance.

Warning When Crossing Funds

You can have the program warn you when a transaction uses multiple funds. Also, the program can automatically create a Due To/From journal entry to adjust transactions using multiple funds.

  1. On the File menu in your PDS program, click Setup > Initial Setup.
  2. Click the Fund Accounting tab.
  3. Select Yes to warn if a transaction uses multiple funds.
  4. Select Yes to automatically create a Due To/From journal entry when a transaction uses multiple funds.
    Note: If you use Accrual Basis accounting, invoices and receivables can generate an adjusted journal entry. If you use Cash Basis, invoices and receivables are not reflected in the books until they are paid/received and do not generate an adjusted journal entry.
  5. For more on these options, see the Fund Accounting section on Set Initial Program Options.
  6. Click Save.

Staying in Balance

Tip: If you know you have an account that is out of balance, the General Ledger report can be helpful for all solutions. Go to Reports > COA Reports > Accounting Reports > General Ledger Report.
To stay in balance, you must use an existing liability account, or you can set up a Due To/From liability account for each fund to offset accounts for any transactions that cross funds. Once you create the Due To/From accounts, select the Due To/From fund codes to display automatically with offsetting transactions.
Note: Before setting up Due To/From accounts, make sure your account number format uses fund codes.
To add a Due To/From account:
  1. On the Other Information tab, click Chart of Accounts > COA Explorer.
  2. Click the liability accounts (Liab.) tab.
  3. Click Edit Accounts, then click Add Account at the top.
  4. Enter an account number and name. For the account type, select Liability. Then, enter or select any additional fields you want.
  5. At the top, click Save.
  6. Click Yes to verify your COA.
To add Due To/From accounts to funds:
  1. On the File menu in your PDS program, click Setup > Account Number > Fund Codes.
  2. Click Insert Code, and enter a fund number and name.
  3. Click Add Accounts.
    1. In the top grid, select the fund you just added.
    2. In the bottom grid, select the Due To/From account.
  4. Click Start Add, then proceed through the confirmation windows.
  5. For the fund you inserted, select the Due To/From account.
  6. Click Save/OK.
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Last updated: October 29, 2024