Set up fund accounting

Companies that need to keep their financial statements balanced by fund will benefit from the Sparkrock 365 fund accounting functionality. Typically, this is achieved with due to and due from inter-company accounts in the balance sheet. The fund accounting functionality ensures balanced To and From accounts, while providing companies with an automatic routine that does not require manual investigation, analysis, and data entry.

Fund Accounting requires defining a fund dimensions and making it mandatory for all posting general ledger accounts, thus enabling all entries to have an associated fund dimension. The users then enter regular transactions, such as general journal, purchase invoice, sales invoice, and so on, and have the fund dimension selected during entry or defaulting from the general ledger account. The fund dimension can be the same or different for the debit and credit part of the transaction. The entries for which these debits and credits are different are the ones that trigger fund balancing entries.

Confirm your operating fund dimension

To use the Sparkrock 365 fund accounting functionality, you must confirm your operating fund dimension.

To confirm your operating fund dimension

1. Choose , enter general ledger setup, and then choose the related link.

   The General Ledger Setup page opens.

2. On the Dimensions FastTab, ensure that either Global Dimension 1 Code or Global Dimension 2 Code are configured as your fund dimension.

Set up general ledger accounts

After the fund dimension and the value for the operating fund have been determined, configure your general ledger accounts.

To set up your general ledger accounts

1. Choose , enter chart of accounts, and then choose the related link.

   The Chart of Accounts page opens.

2. Verify that you have created balance sheet accounts. These accounts are used for posting Due To/From Operating and Due To/From Related fund transactions.

Set up the Fund Accounting Setup page

To use the Sparkrock 365 fund accounting functionality, you must configure the Fund Accounting Setup page.

To set up the Fund Accounting Setup page

1. Choose , enter fund accounting setup, and then choose the related link.

   The Fund Accounting Setup page opens.

2. In Fund Dimension, select your fund dimension.

3. In Due To/From Operating, specify the dimension value that represents your operating fund.

4. On the action bar, choose Configure.

   The Configure Fund Accounting page opens.

5. Perform one of the following steps:

   • If your Due To/From Operating and Due To/From Related general ledger accounts are the same for all related dimensions, select the values in this screen, and then choose OK.
   • Leave the values blank, and then choose OK.

6. If you left Due To/From Operating and Due To/From Related blank in the previous step, populate Due To / From Operating and Due To / From Related with the general ledger account that is to be used for balancing the entries between each respective pair of funds.

7. Choose , enter chart of accounts, and then choose the related link.

   The Chart of Accounts page opens.

8. Select the account that is to be used in automatic transactions, and then on the action bar, choose Edit.

   The G/L Account Card page opens.

9. On the action bar, choose Account > Dimensions.

   The Default Dimensions page opens.

10. In Dimension Value Code, select a dimension value for your fund dimension.

    If your fund dimension is not added as a line, on the action bar, choose New, and then specify values as required.

11. Close the Default Dimensions page.

12. Close the G/L Account Card page.

13. To return to the Fund Accounting Setup page, close the Chart of Accounts page.

14. To verify that all required configuration is complete, on the action bar, choose Confirm Configuration.

15. After all configuration is complete, turn on Enable Fund Balancing.

    You are now ready to start generating automated fund balancing entries.

Set up default dimensions on general ledger accounts

You must set up the operating fund as default dimension value for general ledger accounts that are used in automatic transactions. Typically, these general ledger accounts are the ones that are configured in payroll posting groups, such as bank accounts, vendor accounts payable, and customer accounts receivables.

To set up default dimensions on general ledger accounts

1. Choose , enter chart of accounts, and then choose the related link.

   The Chart of Accounts page opens.

2. Select the account that is to be used in automatic transactions, and then on the action bar, choose Edit.

   The G/L Account Card page opens.

3. On the action bar, choose Account > Dimensions.

   The Default Dimensions page opens.

4. In Dimension Value Code, select a dimension value for your fund dimension.

   If your fund dimension is not added as a line, on the action bar, choose New, and then specify values as required.

Create fund balancing entries

After you have configured fund accounting in Sparkrock 365, you can create automatic entries on an as required basis depending on your organization’s business processes and month or year-end closing routines.

To create fund balancing entries

1. Choose , enter create fund balancing entries, and then choose the related link.

   The Create Fund Balancing Entries page opens.

2. To indicate the date at which you would like to balance your entries, specify a Posting Date Filter.

3. Choose OK.

   Sparkrock 365 generates and posts your entries automatically.

Dimension corrections

To learn how to troubleshoot or correct dimensions, see Troubleshooting and correcting dimensions.

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