Setting up the Business Unit Due To Due From
The Business Unit Due To Due From setting is used when an association produces a separate balance sheet for each business unit and when there are scenarios of single payments, such as a single check, paying invoices containing revenue from two or more business units.
Note: This functionality is only necessary in certain Impexium setups. Clients who have only one business unit will not use the Business Unit Due To Due From functionality.
Example: Scenario: An association has two business units--one for the association and another for a foundation. A member pays an invoice of $100, where $70 of this invoice is for an event for the association, and $30 is for a session for the association foundation.
Without Due to Due From, this would appear as a debit of $100 for the association and a credit of $70 for the association, which is inappropriate.
With Due to Due From, the system knows that the $30 is actually in the association, which now owes the foundation $30. The association has a liability on its books with a credit of $30 owed to the foundation, and the foundation has an asset on their books of $30 as a receivable expected from the association.
For customers exporting batch information to their accounting software, this information is included in the batch export file.
In the example batch pictured below, the purchase of a $6.00 product has been recorded on the batch. This product is associated with the "Qthe Sandboxtro" business unit and GL account, for which a business unit due to due from is set up. In this example, note that the system records the $6.00 purchase as being debited from the business unit "Impex-East" and credited to the business unit "Qthe Sandboxtro."
Once a batch containing these types of transactions has been closed and posted, a Ledger Download area will appear on the Batch Record > Overview tab. Staff can then select the business unit for the ledger to be downloaded and exported.