Transfer of Funds (TF)

Description: Record the movement of funds (i.e., cash) between IU accounts.

Access: Any KFS user can initiate a Transfer of Funds document.

Routing:

  1. Upon submission, the TF document routes to the Fiscal Officer or delegates of all accounts involved.
  2. The document then follows any pre-defined organizational routing.

On This Page: Common Uses | Business Rules | Kinds of Transfer Transactions | Examples

Read about KFS document layout, including standard KFS document components, on the FMS website.


Common Uses

TF documents are often used to:

  • Cover an overdraft,
  • Reimburse an account for an expense,
  • Provide a subsidy,
  • Transfer funds to close out an account,
  • Fulfill a funding commitment, or
  • Bill another department for good or services rendered when the billing department is not eligible to use Internal Billing or Service Billing documents.

Business Rules

  • The "To" and "From" sides of the document must balance.
  • There must be at least one accounting line on the "From" side of the document and at least one accounting line on the "To" side of the document.
  • $0 and negative accounting lines are not allowed.
  • The object sub-type codes must be sub-types of mandatory transfers and non-mandatory transfers. If a mandatory transfer object code is used on the "To" side, a mandatory transfer object code must also be used on the "From" side. If a non-mandatory transfer object code is used on the "To" side, a non-mandatory transfer object code must also be used on the "From" side. Download a complete list of all transfer object codes (XLS).
  • Not for use with object codes representing assets, liabilities, or fund balances.
  • Not for use with object type code ES (Expense Not Expenditure) or IC (Income Not Cash).

The following transactions can be submitted, but will be disapproved:

  • Transfers between clearing fund accounts (68-XX-XXX) and university funds.
  • Transfers between agency fund accounts (97-XX-XXX) and university funds.
  • Transfers between restricted and non-restricted funds, or vice versa (this includes C&G funds).

Kinds of Transfer Transactions

There are two kinds of transfer transactions: mandatory and non-mandatory.

Mandatory transfers are required to meet contractual agreements. For example, moving dedicated student fees to the retirement of indebtedness fund group for principal and interest payments on bonds would be a mandatory transfer. Specific object codes are used to identify mandatory transfer transactions.

Non-mandatory transfers, the more common kind of transfer transaction, are allocations of unrestricted cash between fund groups. These transactions are not required by any external agreements. For example, a dean making a commitment to give a department $500 in support of a mission, without expecting reimbursement, would be a non-mandatory transfer. Non-mandatory transfers include:

  • Non-mandatory additions to loan funds.
  • Additions to quasi-endowment funds.
  • Non-mandatory transfers to plant funds for:
    • General or specific plant additions,
    • Renewals and replacements of plant assets, or
    • Voluntary payments of debt principal.

Examples

Example 1: A small department rents out its meeting room to other departments and charges for room rental on an hourly basis. The department that rents out the room takes in very little annual income, so they are not eligible to use Internal Billing or Service Billing documents. Instead, they use a TF document to charge renting departments for the use of their room.

Example 2: Two departments agree to split the cost of a new printer that both will use. Department A purchases the printer outright for $1,000. Department B then uses a TF document to send Department B $500.