Interfund Transfers

Interfund Transfers is the controlled Fund Accounting workflow for moving dollars between funds without using the sponsor administrative allocation, reimbursements, or expenses. Available on ProEnterprise when the screen opens. It is not open today. Until it is, post a balanced journal entry in Journal Entries.

When you need an interfund move

Use an internal transfer when unrestricted dollars should cover a restricted deficit, when programs reclass net assets, or when due-to and due-from balances need to move between funds. Do not use this pattern for bank deposits, donor designation changes, the sponsor administrative allocation, or vendor bills—those have their own tools.

What the finished workflow will do

• Net asset transfer: internal reclassification between funds

• Due-to / due-from: interfund receivable and payable movement with those accounts chosen explicitly

Each posted transfer will store the journal entry number so you can trace the effect in the General Ledger. Source and destination funds must differ, the amount must be positive, and posting will use the same period-lock and balance checks as a manual journal entry.

What to do today

1. Open Fund Accounting → Journal Entries on the parent organization.
2. Post a balanced entry that moves the same amount out of one fund and into the other.
3. Use your mapped due-to / due-from or net asset accounts.
4. Save the entry number in the memo so next month’s close can trace it.

Good to Know

Internal interfund activity should eliminate in consolidated reporting or stay unmapped for Form 990. See Chart of Accounts for account setup and Sponsor Administrative Allocation when the movement is a sponsor administrative allocation instead of a program reclass.