Building the GL details for a financial event is a two-step process.
First, the system generates the regular GL details for a financial transaction (FT). This is done regardless of whether corporate or fund accounting is used.
Second, with fund accounting activated, the system analyzes the distribution code on each GL detail associated with the FT. If a fund is specified on a distribution code, the system checks the definition of the fund. If fund-balancing entries are specified on the fund, two additional GL entries are added to the FT:
An offsetting entry to the Equity in Pooled Cash account is created for the departmental fund (e.g., if the FT is debiting a given fund, an offsetting credit is created in the funds EPC account).
Another entry to the departments liability account is created for the general fund.
The result is a consolidated set of GL entries for the FT, incorporating the regular entries as well as the fund-balancing entries.
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