How does Due To Due From work
- Knowledge Assistant
Would like to know how Due to / Due from works.
- General Ledger
- Accounts Receivable
- Due to / Due from Setup (gldtdfmt)
Need more information about Due to / Due from functionality, especially for Accounts Receivable.
Due to / Due from is utilized when a posting crosses funds. If a posting debits one fund and credits another fund, and the General Ledger (GL) is configured to balance by fund, then the system will create Due to / Due from entries to balance the posting in the account specified in the Due to / Due from program.
For example, if a posting debits fund 01 and credits fund 02, then the Due to / Due from will create a credit to fund 01 and debit to fund 02 to balance the posting by fund. The Due to / Due from lines will use the accounts specified in the Due to / Due from program. See below for an example:
| Source: | Debit: | Credit: | Source: |
|---|---|---|---|
| Original Posting | 01-123 | 02-123 | Original Posting |
| Dt/Df | 02-456 | 01-456 | Dt/Df |
| Account in Dt/Df | 01-456 | 02-456 | Account in Dt/Df |
- To Setup Due to / Due from, please see: Set up Due To Due From for new fund
- How to identify if Secondary Balancing is in use
- If processing a Transfer of Payment, Transfer of Overpayment, Payment Redistribution, or other Accounts Receivable (AR) transaction that utilizes the Transfer Clearing Account, and the AR Transfer Clearing Account is in another Fund, then a Due To/Due From relationship is required to successfully process and post these transactions. Because of this, creating an AR Transfer Clearing Account in another Fund should be thoughtfully considered. If the AR Transfer Clearing Account is in the same Fund, then a Due To/Due From relationship is not required. If Pooled Cash is in use, then using the Pooled Cash Account as the AR Transfer Clearing Account is another possible solution. That way, the existing Due To/Due From relationships configured for Pooled Cash can be utilized. These options should be taken into consideration when establishing a Transfer Clearing Account and should be tested in a non-PROD environment to verify the results match the intended outcome. More information on how to establish a Transfer Clearing Account can be found here: Transfer Clearing Account is not populated when releasing batch in Transfer of Overpayments