Interfund Transfers

Quick Answer: Interfund Transfers

Interfund Transfers is the controlled workflow for moving funds between your accounting funds without using sponsor-fee allocation, reimbursements, or regular expense workflows. Each transfer creates a reviewable request and posts a balanced journal entry automatically.

When to Use Interfund Transfers

Use this tool for internal fund movement and reclassification—for example, moving unrestricted funds to cover a restricted fund deficit, or reallocating net assets between programs. For external deposits, donation assignment, sponsor-fee allocation, reimbursements, and regular expenses, use those dedicated workflows instead.

Transfer Types

• Net Asset Transfer: Internal net asset movement or reclassification between funds

• Due-To / Due-From: Interfund receivable and payable movement where due-to and due-from accounts are selected explicitly

How It Works

1. Open Fund Accounting → Interfund Transfers
2. Select source fund, destination fund, transfer type, amount, and description
3. Choose the debit and credit accounts for the journal entry
4. Save as draft or post immediately

Each posted transfer stores the resulting journal entry number so you can trace the accounting effect in the General Ledger.

Controls

• Source and destination funds must be different
• Amount must be positive
• Debit and credit accounts are required before saving a draft
• Posting uses standard journal entry validation including balance checks and period-lock checks

Good to Know

Interfund transfers require Pro or Enterprise with accounting access. Internal interfund activity should eliminate in consolidated reporting or remain unmapped for Form 990 reporting. See Chart of Accounts for account setup and Journal Entries for manual posting.