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.
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 Transfers. 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.