Interfund transactions are transactions that take place solely between funds, as opposed to transactions with outside parties.
The first type is a reciprocal loan to another fund, which the receiving fund is required to repay.
The second type are interfund services, which are similar to arms-length exchanges with external parties, as one fund records a revenue, and the other records an expense/expenditure.
The third type is an interfund transfer without the requirement for repayment. These are usually when the general fund makes it possible for another fund without revenue-generating capabilities to operate.
The last type is a reimbursement, which happen when a fund pays for something that another fund should have.
Interfund transactions are transactions that take place solely between funds, as opposed to transactions with outside parties.
ReplyDeleteThe first type is a reciprocal loan to another fund, which the receiving fund is required to repay.
The second type are interfund services, which are similar to arms-length exchanges with external parties, as one fund records a revenue, and the other records an expense/expenditure.
The third type is an interfund transfer without the requirement for repayment. These are usually when the general fund makes it possible for another fund without revenue-generating capabilities to operate.
The last type is a reimbursement, which happen when a fund pays for something that another fund should have.