Overview of Multifund Accounting

Multifund Accounting is an optional accounting feature that lets you post transactions, adjustments, and receipts to multiple balancing segment values or funds. Multifund Accounting is also known as Detailed Receivables Distributions.

In a default accounting model, multiple revenue, freight, and tax lines of a transaction are consolidated and accounted as a single distribution line. When Multifund Accounting is enabled for a business unit and ledger, then the accounting process creates detailed distributions for each transaction line according to the balancing segment values of the account code combinations.

You can use Multifund Accounting to monitor and track the receipts and usage for each of your balancing segment values. This lets you manage, for example, the disbursement of funds supporting a particular public sector project, such as a general operating fund, endowment fund, and gift fund. Or you can monitor and extract financial information in your organization by division, department, and product, without the need for creating separate invoices for each of these sectors.

The use of Multifund Accounting is for the setup of a new business unit and primary ledger only. Multifund Accounting applies to these Receivables event classes only: standard and miscellaneous receipts, invoices, credit memos, debit memos, and adjustments.

For information about the activities supported for Multifund Accounting in each Receivables event class, see Events Supported for Multifund Accounting, Document ID 2558258.1, on My Oracle Support.

Example of Multifund Accounting

These tables provide an example of multifund accounting on an invoice. In this example, Invoice 101 makes use of funding from two different fund sources.

Invoice 101 has two invoice lines, one in the amount of $1000 and one in the amount of $500:

Line Number	Memo Line	Quantity	Unit Price	Amount
1	1 year support	1	1000	1000
2	1 year additional consultations	2	250	500

The accounting for these invoice lines with detailed distributions splits the Receivable and Revenue across the two funds (the additional $190 is for Tax and Freight):

Line	Event	Account	Class	Debit	Credit
1	Invoice Created	02-000-1200-0000-000	Receivable	1120.00
2	Invoice Created	03-000-1200-0000-000	Receivable	570.00
3	Invoice Created	02-000-4100-0000-000	Revenue		1000.00
4	Invoice Created	03-000-4100-0000-000	Revenue		500.00

Reports for Multifund Accounting

Use the available reports to review and reconcile your multifund accounting detailed distributions.

You can manage your multifund accounting detailed distributions using the Receivables to General Ledger Reconciliation Report and the Receivables Aging by General Ledger Account for Multifund Accounting Report.

Note: The use of these reports for reviewing multifund accounting detailed distributions applies only to the ledger and business units set up to use Multifund Accounting.

You can review and reconcile your multifund accounting detailed distributions using the available tools in the Receivables to General Ledger Reconciliation Report. Run the Prepare Receivables to General Ledger Reconciliation process, and then access the summary and detailed reports using the Receivables to General Ledger Reconciliation task.

You can generate and review the aging details for the ledger and business units enabled for Multifund Accounting using the Receivables Aging by General Ledger Account for Multifund Accounting Report. You schedule this report from the Oracle Transactional Business Intelligence Catalog.