As part of our commitment to constantly advance our product to add value to our customers, the product team has added a new monitoring functionality to our ERP solution called Fund Balancing. To further explain the details and increased efficiencies that come with this new feature, we spoke with our ERP Solution Architect, Glen Watson, to get the full scoop on this new Altus functionality.
Why did Altus Dynamics create the Fund Balancing feature?
Many of our clients use Fund Accounting whereby they need to keep their financial statements balanced (or ‘whole’) by Fund. This is normally achieved through the use of ‘due to’ and ‘due from’ intercompany accounts in the Balance Sheet. The Fund Balancing functionality ensures that the ‘to’ and ‘from’ accounts are being balanced and achieves the main purpose of providing our clients with an automatic routine to do so that does not require manual investigation, analysis and data entry.
How does Fund Balancing work?
The new feature provides a setup page where users can define the relationships between Funds, and which G/L Accounts will track the intercompany balances (due tos/froms). A periodic activity can be run to review all entries in the General Ledger since the last time it was run, and prepare a detailed journal entry for Finance to review and post. Each document across Funds is shown separately and uses the original document number so that the new and the original record can be grouped together when a user navigates an entry. Once the journal is posted, the process will update the source entries so that they are not included the next time.
Are there any additional processes that accompany this functionality?
There is additional setup required to ensure the integrity of Fund Balancing, such that all G/L Accounts require a Fund dimension on posting. A report is available to identify if there are any possible setup errors or exceptions.
To conclude, what are the highlights for users?
Rather than having to train all Finance users to keep Fund Balancing intact within the organization, it is possible periodically (and at month-end at a minimum) to automatically identify and post any necessary adjustments. This means that organizations can have an extra ‘set of eyes’ as it were to make sure that their accounts are consistently being balanced.