DT Accounts

• A DT Account represents an investment pool or asset account where a fund maintains a balance.
• In the example below, the fund only participates in one pool: Account 1005 at 100%. The Start Date is the earliest date the fund participated in this pool at this percentage.
  
   
• If a fund has a 50/50 allocation in two pools, it would have two lines each with a percent of 50% and a different account number. Both lines must share a Start Date
  
   
• When a fund leaves a pool, you will open the existing DT Account record(s) and then enter an "End Date" representing the last day the fund participated in that pool.
  

Important: All active funds must have at least one DT Account assigned. Inactive funds must maintain at least one DT Account without an End Date.

 

• To capture the fund's new asset account(s), click "+ New DT Accounts" to create a new record.
  
   
• By ending and starting new DT Account records, you're building a history of where this fund's assets lived and when.

 

  Autobalance

Autobalance is an automated journal entry that moves asset balances between a target fund and the rebalance fund, or between two funds in the event of a transfer.

Key facts about autobalance:

• Autobalance runs every five minutes automatically
• Autobalance Is applied any time an entry does not have equal debits and credits within a fund and/or department
• Autobalance entries always net to zero by G/L Account
• Autobalance entries are not displayed/required to be cleared in bank reconciliation
• If multiple bank accounts post to the same G/L Account, autobalance entries are captured in the bank ledger for the bank account which appears at the top of the list alphabetically

 

Autobalance in action: Gifts

• When a gift payment* is transferred to Business Central from CRM, four lines are immediately created.
   
  • A revenue account is increased (for example, 4010)
  • A receivable account is increased (for example, 1300)
  • The receivable is backed out since the gift is realized (1300)
  • The Undeposited Funds account is increased (1999)
    

*excludes some gift types such as pledges, in kind or gifts of property

 

• When the gift payment is deposited two more lines are added.
  • The Undeposited Funds account balance is backed out (1999)
  • The cash/checking account is increased (for example, 1001)
    
• You’ll notice, all the G/L entries are entered for the gift fund (00589) with the exception of the cash/checking entry. That account uses the Rebalance Fund (00001)
• The use of the Rebalance Fund in the deposit would leave the two funds out of balance, as the gift fund would be short the deposit amount, and the operating fund has gained the deposit amount in the checking account
• To correct this, Business Central will make an Autobalance entry (or DT entry)
  
• The entry puts both funds back into balance by increasing the gift fund’s DT account (example, Pooled Investment Account) and decreasing the balance of the Rebalance Fund in the same account.

• The net affect in the gift fund is an increase in the DT account balance. The activity for the receivable account and Undeposited Funds account both net to zero.
  

• The total assets for the Rebalance Fund don’t increase. However, the checking account balance increases because of the real world deposit of the gift, and the Autobalance entry decreases the balance in the DT Account (example, pool).
  

• If we look a our consolidated account balances for this transaction we’ll see the activity for the receivable account, Undeposited Funds account, and the DT Account (pool) all net to zero. The only account with positive activity is the checking account where the deposit was made.
  

Autobalance in action: Requests

• When a request payment is transferred to Business Central from CRM two lines are immediately created.
   
  • An expense account is increased (for example, 5010)
  • A payable account is increased (for example, 2010)
    
     
• When the request payment is paid, two more lines are added
   
  • The payable account balance is backed out (2010)
  • The cash/checking account is decreased (for example, 1001)
    
  • You’ll notice, all the G/L entries are entered for the request fund (00975) with the exception of the cash/checking entry. That account uses the Rebalance Fund (00001). This leaves the funds out of balance, as the request fund would increase by the amount of the payment, and the Rebalance Fund has decreased by the amount of the payment in the checking account. To correct this, Business Central will make an Autobalance entry (or DT entry).
    
  • The entry puts both funds back into balance by decreasing the request fund’s DT account (example, Pooled Investment Account) and increasing the balance of the Operating Fund in the same account. The net affect in the request fund is a decrease in its DT Account balance as no G/L entries for this fund utilize the checking account, and the activity for the payable account nets to zero.
    
  • The total assets of the Rebalance Fund don't decrease. However, the checking account balance did decrease because this is where the payment was paid from. And the Autobalance entry has given the Rebalance Fund a positive balance in the DT Account
    
  • If we look a our consolidated account balances for this transaction we’ll see the activity for the payable account and the DT Account (pool) all net to zero. The only account with negative activity is the checking account where the request was paid.
    

 

 

  Reapportioning

Reapportioning compares a fund's DT Account breakdown to its asset balances*

• If assets are in balance according to the DT Accounts, nothing happens
• If assets are not in balance, Business Central "reapportions" the assets to where they belong based on the DT Accounts
• If a fund has a balance in the 2999(9) account due to bad data/missing DT Accounts/incorrect percentages, Reapportioning will find and correct them (after DT Account setup issues have been corrected by the user)

*Reapportioning does not apply to asset accounts where the fund has never had a DT Account

This process runs once nightly automatically, and can be run manually at any time from the Accounting Settings record.

Reapportioning Example

Tenbusch Family Fund has

  Asset Rebalancing

Thanks to Autobalance, each fund appropriately shows the gain or loss of assets in the assigned DT Account(s). This simplifies reporting and asset rebalancing.

The Rebalance Fund is key to this process. The Autobalance entries in the Rebalance fund show us where money is due.

• For a gift, in our example above money is due to the pool and due from the checking account
• For a request, in our example above money is due to the checking account and due from the pool
• The Rebalance Fund balance sheet shows you how much money to move
• When assets are physically transferred  between accounts, the user can enter a simple two-line journal entry between bank accounts within the Rebalance Fund