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Correcting Historical Gifts Through Transfers of Historical Gift and Appreciation (Transparent Method)

There are multiple ways to correct a incorrectly applied historical gift in Fundriver, the most transparent of which is outlined below. If you would like to correct the gift using the method that requires the fewest steps, please follow the steps outlined in this article: https://fundriver.zendesk.com/hc/en-us/articles/211774223-Correcting-Historical-Gifts-Using-Override-Unit-Price-and-Effective-Date-Features

There may be occasions where a past gift needs to be corrected, perhaps because it was assigned to the wrong fund or entered incorrectly.  How you correct the gift depends on whether your organization uses a Beginning of Month or End of Month pricing model.  The training below details how to verify which model you are using (if you aren't aware) and then process transactions to correct the improperly recorded gift.  If you don't need to verify your pricing model, skip to step 3.

1. Log in to Fundriver and click on SUPPORT/SETTINGS.

Log in to Fundriver and click on SUPPORT/SETTINGS.

2. Click on ACCOUNT SETTINGS.  Your pricing model will display on the second row of the ACCOUNT SETTINGS table.

Click on ACCOUNT SETTINGS.  Your pricing model will display on the second row of the ACCOUNT SETTINGS table.

If your organization uses a Beginning of Month pricing model, you can make the correction in the current posting period and use the unit price in the period prior to when the gift was recorded.  If you use an End of Month model, you will need to reopen the previous period to make the correction and use the unit price for the period in which the gift was recorded.  This example is using a Beginning of Month pricing model, and would therefore use the November 2013 unit price for a December 2013 gift.

3. Before you can determine how much needs to be transferred, you need to figure out the unit price at both the time of the gift and the time of the transfer. Click on ORGANIZE > INVESTMENT POOL.

Before you can determine how much needs to be transferred, you need to figure out the unit price at both the time of the gift and the time of the transfer. Click on ORGANIZE > INVESTMENT POOL.

4. Click on the POOL HISTORY tab.

Click on the POOL HISTORY tab.

5. Select the appropriate INVESTMENT POOL.

Select the appropriate INVESTMENT POOL.

6. The program will load market information for past periods.  Find the period in which the gift was posted that needs correction and then note the UNIT PRICE.

The program will load market information for past periods.  Find the period in which the gift was posted that needs correction and then note the UNIT PRICE.

In this example, a $12,500 gift made to the Book Fund needs to be adjusted.  The gift was posted in the 12/31/2013 period.  Since this example is using a Beginning of the Month pricing model, we need to use the Unit Price from 11/30/2013.  Attached to this training is a calculator tool that can assist with determine the amounts that need to be transferred.  The unit price at the time the gift was made is the first piece of data needed for the calculation (plug into cell C7).

7. Next, find the unit price for the period in which the gift will be corrected.

Next, find the unit price for the period in which the gift will be corrected.

This can be plugged into cell C10 in the calculator.

8. To calculate the adjustment amounts, first take the historical gift amount divided by the unit price at the time it was posted.  That calculation will gift you the number of units purchased.

To calculate the adjustment amounts, first take the historical gift amount divided by the unit price at the time it was posted.  That calculation will gift you the number of units purchased.

If you are using the calculator, plug in the gift amount in cell D7.

9. Next, take the number of units and multiply it by the unit price for the period in which the adjustment will be made.  That calculation will gift you the current value of the gift.

Next, take the number of units and multiply it by the unit price for the period in which the adjustment will be made.  That calculation will gift you the current value of the gift.

The tool will do this calculation for you.

10. The adjustments you make in Fundriver will move both the historic gift AND appreciation.  To figure out how much appreciation to transfer, take the Transaction - Sell amount from above and subtract the historical gift.

The adjustments you make in Fundriver will move both the historic gift AND appreciation.  To figure out how much appreciation to transfer, take the Transaction - Sell amount from above and subtract the historical gift.

This will appear on the TRANSFER line in the calculator.

11. Now that amount has been calculated, to make these corrections in Fundriver, click on the ACTIVITY tab and select TRANSACTION ENTRY.

Now that amount has been calculated, to make these corrections in Fundriver, click on the ACTIVITY tab and select TRANSACTION ENTRY.

11.1. For End of Month pricing models, click on ACTIVITY > REOPEN PERIOD and select the period you would like to reopen prior to making the adjustments.

For End of Month pricing models, click on ACTIVITY > REOPEN PERIOD and select the period you would like to reopen prior to making the adjustments.

Detailed instructions related to opening a period can be found in the Fundriver Knowledge Base under General Software Use.

12. In the MAIN tab, select a transaction type of HG/Cash Transfer.

In the MAIN tab, select a transaction type of HG/Cash Transfer.

13. Choose the fund that originally received the gift.

Choose the fund that originally received the gift.

14. Enter the historical gift in the AMOUNT field (enter as a negative since the gift will be leaving the fund).  Click SAVE.

Enter the historical gift in the AMOUNT field (enter as a negative since the gift will be leaving the fund).  Click SAVE.

15. Create another transaction to show the historical gift moving to the new fund.  Choose HG/Cash Transfer again and enter the receiving fund in the ENDOWMENT field.  Enter the historical gift amount, this time as the opposite sign as in the first transaction.  Click SAVE.

Create another transaction to show the historical gift moving to the new fund.  Choose HG/Cash Transfer again and enter the receiving fund in the ENDOWMENT field.  Enter the historical gift amount, this time as the opposite sign as in the first transaction.  Click SAVE.

16. Lastly, add a transaction to transfer the appreciation earned by the gift since it was originally posted.  Choose a TRANSACTION TYPE of INTERNAL TRANSFER and show the appreciation amount transferring from the original fund to the new fund.

Lastly, add a transaction to transfer the appreciation earned by the gift since it was originally posted.  Choose a TRANSACTION TYPE of INTERNAL TRANSFER and show the appreciation amount transferring from the original fund to the new fund.

17. Click SAVE.  The gift has now been corrected in Fundriver.  The "Total Market Value Transferred Out", as shown below, should be the historic gift plus any appreciation.

Click SAVE.  The gift has now been corrected in Fundriver.  The "Total Market Value Transferred Out", as shown below, should be the historic gift plus any appreciation.
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