The OVERRIDE UNIT PRICE/EFFECTIVE DATE feature, located on the TRANSACTION ENTRY tab, was originally created to correct gifts that were recorded to the wrong funds (for clients that don't want to make the correction by reopening back to the period of the error). This feature can also be used to post a new gift in the current period that should have been recorded in a prior period. Please see below for more information on how this feature works in Fundriver.
In this example, we will be correcting a gift that was attributed to the incorrect fund 600018 in July 2014 (see highlight below).
To correct this error, two transaction entries will need to be made.
Navigate to the ACTIVITY > TRANSACTION ENTRY screen choose the TRANSACTION TYPE of CASH HISTORICAL GIFT TRANSFER (if you do not see the CASH HISTORICAL GIFT TRANSFER option, you may see HG/CASH TRANSFER). Choose the fund to which the gift was incorrectly applied and enter the gift amount as a negative number.
This transaction transfers the historical gift out of the incorrect fund.
Next, click on the ADDITIONAL DATA tab. There are 2 options for updating the unit price to the historical unit price of the gift.
The first is to select the EFFECTIVE DATE in which the gift was originally entered.
If the date of the gift was prior to using Fundriver, the second option of manually entering in the unit price can be used. Simply select the box "Override Unit Price" and manually key in the unit price from past spreadsheets or from a legacy system.
Dest Org and Object Code tie back to destination accounts on the GL. These fields are optional.
Click SAVE.
Next, enter a second transaction to transfer the gift into the correct fund. Choose the correct fund for the ENDOWMENT entry and enter the AMOUNT as a positive number.
Click on the ADDITIONAL DATA tab and enter the UNIT PRICE OVERRIDE information in the same way as was done for the first entry. Click SAVE.
Transactions to correct the gift are entered as of the current post date. As you can see from the EDIT TRANSACTIONS screen, two correction entries were made, both categorized as HG/Cash Transfer (or Cash Historical Gift Transfer). The OVERRIDE UNIT PRICE column is populated with TRUE to reflect that the override occurred.
During the Fundriver posting process, the system's calculations will use the 7/31/14 unit price and update units accordingly. The balances of the 2 funds will automatically be adjusted through unrealized gains/losses.
There are drawbacks to correcting a gift using this method. Corrections made in this way aren't as transparent as creating transfer transactions for both the historical gift and appreciation. It also may not work for clients that track Book Value at the Fund level. A separate entry to correct the Book Value may be needed.
Another method for correcting a historical gift is available and can be found here.
