Transfer between funds not showing up on my income and expenditure report
This article explains why a fund to fund transfer doesn't show in the Income & Expenditure report, and how you can amend this using a category transfer.
In this article:
How does a fund to fund transfer work?
A fund to fund transfer is neither income nor expenditure - it's simply a movement between funds. Therefore, you won't find it on the income and expenditure report you are looking at.
However, a fund to fund transfer does affect the fund balances that you see on reports such as the Balance Sheet and the Fund Movement Report.
As you will see on the Fund Movement Report, at any one time the balance of a fund is made up of:
- The Fund's opening balance
- + Income
- - Expenditure
- +/- Fund Transfers
- + Investment Gains
- + Asset Revaluation.
So, if you transfer money out of one fund into another, there'll be:
- a decrease in the fund balance of the fund the money is transferred out of;
- an increase in the fund balance of the fund the money is transferred into;
- but no impact on either income or expenditure.
Is it possible to get my transfer to show in my income and expenditure report?
Yes, it is possible to have the transfer show in the income and expenditure report. However, to do this, you need to replace the fund to fund transfer with a category transfer instead.
This can also be found within the Adjustments screen.
- To remove the fund to fund transfer, navigate to the Fund Transfers screen, and click the 'delete' button to the right of it.
- To add a category transfer instead, go to the category transfers screen and click the 'Add new' button. Typically, this would be done as an 'expenditure category transfer'.
The category transfer will show in one fund as expenditure (as you are wanting), and will appear in the other fund as negative expenditure (not as an income). The reason is that if this were to appear as income, both your total income and expenditure for the financial year would be over-inflated, causing your year-end reports to be incorrect (which is why ExpensePlus doesn't allow this).
To help add clarity, organisations often create a dedicated expenditure category in the fund the money is moving to, named 'less money from fund [name]'. This way, in the income and expenditure report for that fund, the fund transfer is easier to identify.
To help you better understand the Adjustments module as a whole, please visit the module overview page here.