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Fund In Transit

Overview​

Fund In Transit refers to the amount of money that has been initiated for transfer between accounts, departments, or branches, but has not yet been received or recorded by the recipient. These funds are in a temporary state, waiting for final settlement and confirmation. Tracking funds in transit ensures transparency, accountability, and accuracy in financial reporting.

What is Fund In Transit?​

Fund In Transit represents the temporary holding of financial resources that are currently being transferred within an organization or between financial institutions. These funds have been debited from the source but not yet credited to the destination.
This occurs in various scenarios such as inter-branch transfers, bank deposits not yet reflected, or internal project fund movements.

Why Fund In Transit is Important​

  • Ensures accurate financial tracking of pending transfers
  • Avoids duplicate or missed entries in ledgers
  • Helps reconcile discrepancies between source and destination balances
  • Provides a clear picture of available vs. pending funds
  • Improves financial reporting and audit readiness

Key Features of Fund In Transit (in PrismERP or ERP Systems)​

1. Transfer Record Holding
Temporarily logs all fund transfers that are not yet completed or received.

2. Real-Time Monitoring
View the current status of each fund in transit, including source, destination, date, and expected receipt.

3. Dual-Entry Visibility
Reflects both the debit from the source and pending credit to the destination for accurate accounting.

4. Exception Handling
Flags delays or errors in receipt, allowing finance teams to take corrective actions.

5. Integration with Transfers
Works seamlessly with modules like Inter-Branch Transfer, Cash Management, and General Ledger.

6. Audit Logs
Maintains a full history of transactions, status changes, and confirmations.

Use Cases​

  • Inter-branch or inter-department fund transfers
  • End-of-day bank deposits pending confirmation
  • Transfers between project or cost center accounts
  • Large payment settlements awaiting final approval or clearance
  • Cross-border transactions with multiple confirmation layers

Integrated Modules (in PrismERP)​

  • Fund Requisition – Captures fund purpose and initiates the transfer
  • Inter-Branch Transfer – Manages and tracks fund movement between branches
  • General Ledger – Reflects financial entries of debits and pending credits
  • Accounts & Banking – Shows real-time fund status before and after posting

Final Thoughts​

By tracking funds in transit, organizations gain a comprehensive view of their internal financial flows. PrismERP and similar systems ensure that money doesn’t go unaccounted for during the transfer process—improving both accuracy and confidence in financial operations.

Request a Demo to learn how Fund In Transit tracking in PrismERP helps improve financial control and audit readiness.