#DUE TO DUE FROM ACCOUNT IN QUICKBOOKS TRIAL#
When thinking about this process, and during audit preparation, a good control is to run a Fund Level Trial Balance for your Due To/Due From accounts. In our example above, at some point, Fund 02 would cut a check to Fund 01 for $100 and that transaction would zero out the Due To/From balances from each Fund. Theoretically, the Due To/From accounts for each individual Funds can be used to pay each other back. While Fund 01 will have a Due From Grant ABC for $100 and have $100 less cash. Fund 02 Credit Due To General Fund $100Īt the end of this entry, Fund 02 will have a Due To General Fund for $100 and a corresponding expense.Fund 01 Debit Due From Grant Fund ABC $100.This simplified transaction would look something like this: Thus, Fund 02 would have a Due To General Fund for $100 and Fund 01 would have a Due From Grant Fund ABC for $100. That means, Fund 02 would owe Fund 01 $100. Let’s say your General Fund (Fund #01) pays a bill for $100 on behalf of an individual Grant Fund ABC (Fund #02). Because this is all done within the organization, every time one fund loans money to another fund, a Due From is created in the company doing the loaning and a Due To is created in the fund that is doing the borrowing. Remember, this all happens within the organization.
A Due To, is when one fund borrows monies from another fund and a Due From is when one fund loans monies to another fund. Now, Due To/Due From’s are “internal” accounts that track what is borrowed and lent among funds. Fund Accounting enables you to track each individual fund/company, and isolate financial transactions. Ultimately, each individual company/fund will be consolidated to report on the entire organization as a whole.
Thus tracking their own individual financial activity. Try thinking of each fund as being it’s own “company,” within one main company and each company/fund having their own set of financials. Simplified, fund accounting tracks different sources of funds (ie grants, donations, taxes, bonds, etc…) and where they are spent. But first, a crash course in Fund Accounting. Let’s see if we can simplify how they work and their significance. Due To, Due From accounts can be somewhat confusing.
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