Multi-Fund Accounts Receivable accounting methods are predefined in Oracle Applications and have two accounting options:
For example, a non-profit research group, Big Think Tank Institute, must issue approximately 30 invoices per week to various foundations, endowments, and government agency grants for funding of its continued operations. Typically, one funding agency, such as the National Science Foundation (NSF), provides money for several operational funds operated by Big Think Tank.
The following conditions exist in this example:
NSF provides funding for the General Fund, Operating Fund, and Trust Fund of Big Think Tank.
In the Big Think ledger, the General, Operating, and the Trust funds are represented by the balancing fund segment values 100, 200, and 300.
NSF wants to receive the invoice for their funding dollars in a single invoice.
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Multi-Fund Accounts Receivable
If the Balancing accounting method of multi-fund accounts receivable is assigned to the Big Think Tank ledger, Big Think Tank can debit the natural receivables account, 1210, for all three funds: 100, 200, and 300. Big Think Tank can now track the outstanding receivables for each balancing segment fund.
The invoice accounting for NSF using the Balancing method appears as shown in the table below. For the Receivables accounts, the balancing segment values are copied from the revenue credit lines and all other segments from the receivables account.
| Line | Description | $ Amount | Revenue Account (Fund-Cost Center-Natural Account) | Receivables Account (Fund-Cost Center-Natural Account) |
|---|---|---|---|---|
| 1 | General Funds | 1,000 | 100 - 35 - 5500 | 100 - 00 - 1210 |
| 2 | Operating Funds | 2,500 | 200 - 35 - 5600 | 200 - 00 - 1210 |
| 3 | Trust Funds | 3,000 | 300 - 35 - 5700 | 300 - 00 - 1210 |
If the Account accounting method of multi-fund accounts receivable is assigned to the Big Think Tank ledger, Big Think Tank can debit the natural receivables account, 1210, for all three funds: 100, 200, and 300. Big Think Tank can now track the outstanding receivables for each balancing segment other than the account segment.
The invoice accounting for NSF using the Account method appears as shown in the table below. For the Receivables accounts, all the segments other than the account segment value are copied from the revenue credit lines. The account segment value comes from the receivables account.
| Line | Description | $ Amount | Revenue Account (Fund-Cost Center-Natural Account) | Receivables Account (Fund-Cost Center-Natural Account) |
|---|---|---|---|---|
| 1 | General Funds | 1,000 | 100 - 35 - 5500 | 100 - 35 - 1210 |
| 2 | Operating Funds | 2,500 | 200 - 35 - 5600 | 200 - 35 - 1210 |
| 3 | Trust Funds | 3,000 | 300 - 35 - 5700 | 300 - 35 - 1210 |
Multi-fund accounts receivable provides the ability to track separate cash balances within multiple fund segments.
If an agency maintains separate Receivables balances within each separate fund, it is most likely required to maintain separate cash balances within each fund.
The multi-fund accounts receivable accounting method lets you track cash balances in several funds. When you apply a receipt against an invoice with more than one Receivables line, the multi-fund accounts receivable generates one debit cash entry for each Receivables line in the invoice.
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Multi-Fund Accounts Receivable
In the previous example, Big Think Tank issued an invoice with multi-fund accounts receivable. The invoice has three Receivables lines and three Receivables balances in funds 100, 200, and 300 as shown in the table below.
| Line | Description | $ Amount | Revenue Account (Fund-Cost Center-Natural Account) | Receivables Account (Fund-Cost Center-Natural Account) |
|---|---|---|---|---|
| 1 | General Funds | 1,000 | 100 - 35 - 5500 | 100 - 35 - 1210 |
| 2 | Operating Funds | 2,500 | 200 - 35 - 5600 | 200 - 35 - 1220 |
| 3 | Trust Funds | 3,000 | 300 - 35 - 5700 | 300 - 35 - 1230 |
The multi-fund accounts receivable accounting method lets you perform line-level cash receipt applications to invoices and to track cash balances in separate funds as shown in the table below, using check number 12345 as an example.
| Line | $ Amount Applied | Receivables Account | Cash Account |
|---|---|---|---|
| 1 | 1,000 | 100 - 35 - 1210 | 100 - 35 - 1113 |
| 2 | 2,500 | 200 - 35 - 1220 | 200 - 35 - 1114 |
| 3 | 3,000 | 300 - 35 - 1230 | 300 - 35 - 1115 |
The following examples use a three-segment chart of accounts where the first segment is Fund, the second segment is Department, and the third segment is Account. The accounting examples are discussed for the following transaction types:
Invoice
Direct credit memo at header level (line, tax, and freight)
Direct credit memo at header level (line only)
Direct credit memo at line level
On-account credit memo
The credit memo examples are based on the following invoice.
| Debit/Credit Account Name | Debit Description | Credit Description |
|---|---|---|
| Cr. Revenue | $1,000 Account - 02.101.3000 | |
| Cr. Tax | $50 Account - 02.000.2500 | |
| Cr. Freight | $20 Account- 02.101.4500 | |
| Cr. Revenue | $500 Account - 03.102.3000 | |
| Cr. Tax | $25 Account - 03.000.2500 | |
| Cr. Freight | $10 Account - 03.102.4500 | |
| Dr.Receivables | $1,605 Account 01-000-1200 |
| Debit/Credit Account Name | Debit Description | Credit Description |
|---|---|---|
| Dr. Receivables | $1,000 Account - 02.000.1200 | |
| Dr. Receivables | $50 Account - 02.000.1200 | |
| Dr. Receivables | $20 Account - 02.000.1200 | |
| Dr. Receivables | $500 Account - 03.000.1200 | |
| Dr. Receivables | $25 Account - 03.000.1200 | |
| Dr. Receivables | $10 Account - 03.000.1200 | |
| Cr. Revenue | $1,000 Account - 02.101.3000 | |
| Cr. Tax | $50 Account - 02.000.2500 | |
| Cr. Freight | $20 Account- 02.101.4500 | |
| Cr. Revenue | $500 Account - 03.102.3000 | |
| Cr. Tax | $25 Account - 03.000.2500 | |
| Cr. Freight | $10 Account - 03.102.4500 |
The following example shows the accounting for a direct credit memo at the header level. The credit memo credits 100% of the line amount, 100% of the tax amount, and 100% of the freight amount.
| Debit/Credit Account Name | Debit Description | Credit Description |
|---|---|---|
| Cr. Receivable | $1,000 Account - 02.000.1200 | |
| Cr. Receivable | $50 Account - 02.000.1200 | |
| Cr. Receivable | $20 Account - 02.000.1200 | |
| Cr. Receivable | $500 Account - 03.000.1200 | |
| Cr. Receivable | $25 Account - 03.000.1200 | |
| Cr. Receivable | $10 Account - 03.000.1200 | |
| Dr. Revenue | $1,000 Account - 02.101.3000 | |
| Dr. Tax | $50 Account - 02.000.2500 | |
| Dr. Freight | $20 Account - 02.101.4500 | |
| Dr. Revenue | $500 Account - 03.102.3000 | |
| Dr. Tax | $25 Account - 03.000.2500 | |
| Dr. Freight | $10 Account - 03.102.4500 |
The following example shows the accounting for a direct credit memo at the header level. The credit memo credits 20% of the line amount.
| Debit/Credit Account Name | Debit Description | Credit Description |
|---|---|---|
| Cr. Receivables | $200 Account - 02.000.1200 | |
| Cr. Receivables | $100 Account - 03.000.1200 | |
| Dr. Revenue | $200 Account - 02.101.3000 | |
| Dr. Revenue | $100 Account - 03.101.3000 |
The following example shows the accounting for a direct credit memo at the line level. The credit memo is applied to a specific invoice line.
| Debit/Credit Account Name | Debit Description | Credit Description |
|---|---|---|
| Dr. Revenue | $1,000 Account - 02.101.3000 | |
| Dr. Tax | $50 Account - 02.000.2500 | |
| Dr. Freight | $20 Account - 02.101.4500 | |
| Cr. Receivables | $1,000 Account - 02.000.1200 |
The following example shows the accounting for an on-account credit memo. By default, multi-fund accounts receivable reallocates the credit memo against a customer account.
| Debit/Credit Account Name | Debit Description | Credit Description |
|---|---|---|
| Dr. Revenue | $1,000 Account - 02.101.3000 | |
| Cr. Receivables | $1,000 Account - 02.000.1200 |
| Debit/Credit Account Name | Debit Description | Credit Description |
|---|---|---|
| Cr. Receivables | $623.05 Account - 02.000.1200 | |
| Cr. Receivables | $31.15 Account - 02.000.1200 | |
| Cr. Receivables | $12.46 Account - 02.000.1200 | |
| Cr. Receivables | $311.53 Account - 03.000.1200 | |
| Cr. Receivables | $15.58 Account - 03.000.1200 | |
| Cr. Receivables | $6.23 Account - 03.000.1200 | |
| Dr. Revenue | $1,000 Account - 02.101.3000 |
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Multi-Fund Accounts Receivable
The following examples use a three-segment chart of accounts where the first segment is Fund, the second segment is Department, and the third segment is Account:
The receipt examples are based on the following invoice.
| Debit/Credit Account Name | Debit Description | Credit Description |
|---|---|---|
| Dr. Receivables | $100 Account - 01.000.1200 | |
| Invoice Line 1 Cr. Revenue |
$40 Account - 02.101.3000 | |
| Invoice Line 2 Cr. Revenue |
$60 Account - 03.102.3000 |
| Debit/Credit Account Name | Debit Description | Credit Description |
|---|---|---|
| Dr. Receivables | $40 Account - 02.000.1210 | |
| Dr. Receivables | $60 Account - 03.000.1210 | |
| Invoice Line 1 Cr. Revenue |
$40 Account - 02.101.3000 | |
| Invoice Line 2 Cr. Revenue |
$60 Account - 03.102.3000 |
The following example shows the accounting when applying a receipt to an invoice.
Multi-fund accounts receivable generate multiple cash entries. For example, for a $100.00 receipt, the cash accounting is as follows:
| Debit/Credit Account Name | Debit Description | Credit Description |
|---|---|---|
| Dr. Cash | $100 Account - 01.000.1115 | |
| Cr. Unapplied Receipts | $100 Account - 01.000.1220 | |
| Dr. Unapplied receipts | $100 Account - 01.000.1220 | |
| Cr. Cash | $100 Account - 01.000.1115 | |
| Dr. Cash | $40 Account - 02.000.1115 | |
| Dr. Cash | $60 Account - 03.000.1115 | |
| Cr. Receivables | $40 Account - 02.000.1210 | |
| Cr. Receivables | $60 Account - 03.000.1210 |
The following example shows the accounting when unapplying a receipt.
| Debit/Credit Account Name | Debit Description | Credit Description |
|---|---|---|
| Dr. Cash | $100 Account - 01.000.1115 | |
| Cr. Unapplied receipts | $100 Account - 01.000.1220 | |
| Cr. Cash | $40 Account - 02.000.1115 | |
| Cr. Cash | $60 Account - 03.000.1115 | |
| Dr. Receivables | $40 Account - 02.000.1210 | |
| Dr. Receivables | $60 Account - 03.000.1210 |
The following example shows the accounting when reversing a receipt.
| Debit/Credit Account Name | Debit Description | Credit Description |
|---|---|---|
| Dr. Receivables | $40 Account - 02.000.1210 | |
| Dr. Receivables | $60 Account - 03.000.1210 | |
| Dr. Unapplied | $100 Account - 01.000.1220 | |
| Cr. Unapplied | $100 Account - 01.000.1220 | |
| Cr. Cash | $100 Account - 01.000.1115 | |
| Dr. Cash | $100 Account - 01.000.1115 | |
| Cr. Cash | $40 Account - 02.000.1115 | |
| Cr. Cash | $60 Account - 03.000.1115 |
The following example shows a receipt of $100 partially applied specifically to invoice line one.
| Debit/Credit Account Name | Debit Description | Credit Description |
|---|---|---|
| Dr. Cash | $1040 Account - 01.000.1115 | |
| Cr. Unapplied | $4100 Account - 01.000.1220 | |
| Dr. Unapplied | $40 Account - 01.000.1220 | |
| Dr. Cash | $40 Account - 02.000.1115 | |
| Cr. Cash | $40 Account - 01.000.1115 | |
| Cr. Receivables | $40 Account - 02.000.1210 |
The following example shows a receipt of $100 partially applied generally to the invoice.
| Debit/Credit Account Name | Debit Description | Credit Description |
|---|---|---|
| Dr. Cash | $1040 Account - 01.000.1115 | |
| Cr. Unapplied | $100 Account - 01.000.1220 | |
| Dr. Unapplied | $40 Account - 01.000.1220 | |
| Dr. Cash | $16 Account - 02.000.1115 | |
| Dr. Cash | $24 Account - 03.000.1115 | |
| Cr. Cash | $40 Account - 01.000.1115 | |
| Cr. Receivables | $16 Account - 02.000.1210 | |
| Cr. Receivables | $24 Account - 03.000.1210 |
Related Topics
Multi-Fund Accounts Receivable
The following examples use a three-segment chart of accounts where the first segment is Fund, the second segment is Department, and the third segment is Account. The following accounting examples are considered.
Invoice
Invoice type adjustment
Line type adjustment
Tax type adjustment
Freight type adjustment
Line type adjustment to a single line
The adjustment examples are based on the following invoice.
| Debit/Credit Account Name | Debit Description | Credit Description |
|---|---|---|
| Dr. Receivables | $1,605 Account - 01.000.1200 | |
| Cr. Revenue | $1,000 Account - 02.101.3000 | |
| Cr. Tax | $50 Account - 02.000.2500 | |
| Cr. Freight | $20 Account- 02.101.4500 | |
| Cr. Revenue | $500 Account - 03.102.3000 | |
| Cr. Tax | $25 Account - 03.000.2500 | |
| Cr. Freight | $10 Account - 03.102.4500 |
| Debit/Credit Account Name | Debit Description | Credit Description |
|---|---|---|
| Dr. Receivables | $1,000 Account - 02.000.1200 | |
| Dr. Receivables | $50 Account - 02.000.1200 | |
| Dr. Receivables | $20 Account - 02.000.1200 | |
| Dr. Receivables | $500 Account - 03.000.1200 | |
| Dr. Receivables | $25 Account - 03.000.1200 | |
| Dr. Receivables | $10 Account - 03.000.1200 | |
| Cr. Revenue | $1,000 Account - 02.101.3000 | |
| Cr. Tax | $50 Account - 02.000.2500 | |
| Cr. Freight | $20 Account- 02.101.4500 | |
| Cr. Revenue | $500 Account - 03.102.3000 | |
| Cr. Tax | $25 Account - 03.000.2500 | |
| Cr. Freight | $10 Account - 03.102.4500 |
The following example shows an adjustment against an entire invoice.
| Debit/Credit Account Name | Debit Description | Credit Description |
|---|---|---|
| Cr. Receivables | $1,000 Account - 02.000.1200 | |
| Cr. Receivables | $50 Account - 02.000.1200 | |
| Cr. Receivables | $20 Account - 02.000.1200 | |
| Cr. Receivables | $500 Account - 03.000.1200 | |
| Cr. Receivables | $25 Account - 03.000.1200 | |
| Cr. Receivables | $10 Account - 03.000.1200 | |
| Dr. Adjustment | $1,000 Account - 02.000.1260 | |
| Dr. Adjustment | $50 Account - 02.000.1260 | |
| Dr. Adjustment | $20 Account - 02.000.1260 | |
| Dr. Adjustment | $500 Account - 03.000.1260 | |
| Dr. Adjustment | $25 Account - 03.000.1260 | |
| Dr. Adjustment | $10 Account - 03.000.1260 |
The following example shows an adjustment at the line level.
| Debit/Credit Account Name | Debit Description | Credit Description |
|---|---|---|
| Cr. Receivables | $200 Account - 02.000.1210 | |
| Cr. Receivables | $100 Account - 03.000.1210 | |
| Dr. Adjustment | $200 Account - 02.000.1260 | |
| Dr. Adjustment | $100 Account - 03.000.1260 |
The following example shows an adjustment to invoice tax lines.
| Debit/Credit Account Name | Debit Description | Credit Description |
|---|---|---|
| Cr. Receivables | $50 Account - 02.000.1210 | |
| Cr. Receivables | $25 Account - 03.000.1210 | |
| Dr. Adjustment | $50 Account - 02.000.1260 | |
| Dr. Adjustment | $25 Account - 03.000.1260 |
The following example shows an adjustment to invoice freight lines.
| Debit/Credit Account Name | Debit Description | Credit Description |
|---|---|---|
| Cr. Receivables | $20 Account - 02.000.1210 | |
| Cr. Receivables | $10 Account - 03.000.1210 | |
| Dr. Adjustment | $20 Account - 02.000.1260 | |
| Dr. Adjustment | $10 Account - 03.000.1260 |
The following example shows a line type adjustment to a single line.
| Debit/Credit Account Name | Debit Description | Credit Description |
|---|---|---|
| Cr. Receivables | $1,000 Account - 02.000.1210 | |
| Dr. Adjustment | $1,000 Account - 02.000.1260 |
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