Multi-fund is an optional accounting feature that lets you post invoices, receipts, debit memos, credit memos, and adjustments to multiple balancing segment values or funds.
A fund is a source of money. Public sector entities have multiple funds in a single transaction. For example - general operating fund, an endowment fund, and a gift fund and every fund has a different purpose and a different reporting requirement.
Many public sector entities must report the amount of cash that was deposited and disbursed by fund. To assist public sector organizations in meeting their reporting requirements, Oracle provides predefined application accounting definitions that can be assigned to the subledger accounting methods. The predefined accounting definitions used for multi-fund accounts receivable are:
Multi-Fund Accrual - Account Method
Multi-Fund Accrual - Balancing Method
These accounting definitions let agencies track receivables, receipts, and adjustments by fund. With multi-fund accounts receivable, you can:
Post multiple matching revenue and receivables entries to many different operating funds
Create matching cash receipts, adjustments, and discount journal entries against the receivables balances in all necessary operating funds
Record revenue, tax, and freight in multiple funds within a single invoice
Automatically record matching receivables balances in each corresponding fund
Important: For a multi-fund accounts receivable, you should first create accounting for the invoice and only after that for the receipt. This is because the receipt derives the CCIDs from the invoice.
Steps to use/enable this feature:
Enabling this feature can be achieved by performing following setups:
Setups:
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1. Opting in this feature in Functional Setup Manager
2. Enabling the feature in Receivables System Options
3. Define Subledger Accounting Method for supporting the creation of detailed distributions
Step 1. Opting in this feature in Functional Setup Manager
a. From the Home page, go to My Enterprise > New Features
b. Go to Opt-In for Financials - Create Multifund Accounting
c. Enable "Create Detailed Receivables Distributions" feature
d. Click Done
Alternatively:
a. Go to My Enterprise > Offerings > Financials
b. Opt In: Financials > Customer Invoice Processing > Edit the Features
c. Search for Create Detailed Receivables Distributions - Enable the option
Step 2. Enable the feature in Receivables System Options
a. Setup and Maintenance> Manage Receivables System Options
b. Select the business unit that requires this feature.
c. From the ‘Edit System Options’ page, select ‘Enable multifund accounting’ in the Accounting section of the Billing and Revenue tabbed region.
NOTE: On enabling this option, the Detailed Receivables Distributions feature becomes automatically applicable to this business unit and ALL other business units that share the same Ledger.
Once enabled this option cannot be reverted. Because of this, a warning message is displayed before confirming the selection. Choose ‘Yes’ to continue.
Step3. Define Subledger Accounting Method for supporting the creation of detailed distributions
a. Setup and Maintenance> select the task ‘Manage Implementation Projects’.
b. Using the reference of an Implementation Project, search for the task ‘Manage Accounting Methods’ from the Receivables configuration.
c. Then search for the predefined Accounting Method ‘Standard Accrual’ and duplicate it.
d. In the section for Journal Entry Rule Set Assignments for Receivables, delete the existing rule sets for Adjustment, Debit Memo, Credit Memo, Invoice, Miscellaneous Receipt and Receipt.
e. Re-create these records using the predefined Rule Sets for Multifund Accounting, which are suffixed with the word ‘Multifund Accounting Balancing Method’. Alternatively, you can create your own rule sets to address any specific accounting requirements.
f. Then activate the Accounting Method from Menu Actions > Change Status.
NOTE: Note that the predefined Journal Entry Rule Sets associated with the Accounting Method will have the default status as ‘Incomplete’. On activating the Accounting Method, the corresponding Journal Entry Rule Sets will also be activated.
g. Associate this Accounting Method to the Ledger. Access the task ‘Specify Ledger Options’ using the reference of an Implementation Project. For this ledger, select the Accounting Method created for Multi-fund Accounting, in the section for Subledger Accounting.
