Fund Management

• 1: Create Funders
• 2: Create Funds
• 3: Create Projects
• 4: Create Commitments
• 5: Reclassification of Entries
• 6: Apply entries
• 7: Create Allocations

1 - Create Funders

Funders are your source of income. In this solution the Funder is a Customer.

The first thing for getting started is creating a new funder. The steps followed to create a new funder are the same as when creating a new customer. You can create a new funder by following the steps in here.

2 - Create Funds

The process of keeping track of the donations, reservations and usage involves the creation of a fund to support programs and projects for a specific cause and purpose. Before you get started working with the funds, there are certain steps you need to create it and based on the conditions, update it’s settings.

To start with creating one, choose the 🔎 icon, enter Funds , and then choose the related link. Select New and the following fields are to be completed for the creation of a new fund.

Setup the General Fast Tab

The General fast tab allows you to set up a fund and add settings. Some of the most important fields are as follows:

• Mark Blocked if the related fund is blocked from being posted in transactions, for example a funder that is declared insolvent.
• Mark Restricted to true if the fund is restricted to a certain purpose. This field is used to only show information on the fund, does not have any role on ledger entries.
• Single Fund: When active, shows that a single funder is contributing in this fund. If set, Funder No. needs to be specified. You can select the Funder No. which is a lookup on the Customers (considering every Customer is a Funder).
• Assign the dimensions that are specific to the created fund, to be able to track and generate reporting data.

Statistics

The statistics fast tab shows information about commitments, reservations, and usage of the fund, where drilling down shows you the funder ledger entries of each type associated with this fund.

3 - Create Projects

To effectively manage funds, it is important to have a system in place that allows you to track expenses and income. One way to achieve this is by creating a project. By creating a project, you can set up a structure for tracking expenses, usage and income related to the project, as well as monitor the overall budget and allocation of funds. This can help you ensure that funds are being used efficiently and that you are staying within budget. Additionally, having a dedicated project can help with transparency and accountability, as it provides a clear record of all financial transactions related to the project.

To create a new project, follow the steps in here.

4 - Create Commitments

A fund commitment is a pledge or promise by an investor to contribute a certain amount of money to a fund over a specified period of time. The commitment may be made by an individual, institution, or corporation, and it is typically made prior to the fund’s initial closing. The commitment is not an actual investment, but rather a promise to make an investment in the future when the fund makes a capital call. The commitments help the fund manager plan its investment strategy and ensure that it has sufficient capital to execute its investment plan.

It is possible to track and post fund commitments, agreed or received for a certain fund, through the Fund Commitment document and Fund Journal. Posting the document results in creating fund ledger entries of type commitment.

Fund commitment

Create a new Fund Commitment

Choose the 🔎 icon, enter Fund Commitments, and then choose the related link. Select New to create a new document.

• Enter the Funder No. by selecting an existing funder.
• Fill in the remaining fields on the Fund Commitment page as necessary. Hover over a field to read a short description.

You’re now ready to fill in the Lines FastTab, with Funds you are creating the commitments for.

The Lines fast tab allows to create fund commitment lines. The following fields contain information regarding the lines:

• Select the Fund No. you want to create a commitment for.
• Fill in the total Amount of the commitment entry.
• Select an Expiry Date which represents the date when the commitment expires and can no longer be applied to costs.
• Fill in the remaining fields on the Lines. Hover over a field to read a short description.
• When the Lines are completed, choose the Post action.

The related Fund Commitment is now posted and has created Fund Ledger Entries of type Commitment. The fund commitment is removed from the list of fund commitments and replaced with a new document in the list of Posted Fund Commitments.

Fund journal

The Fund Journal can be used to post commitments, but this is not its primary use, it is used for more special cases. The journal is a way to create fund ledger entries without using fund commitment documents, and its primary use is to make corrections or end of process changes.

Posting through the Fund Journal

Choose the 🔎 icon, enter Fund Journal, and then choose the related link. Select a Fund Journal Template from the ribbon, then complete the fields to create a fund journal batch. Fill in the fields based on the descriptions in the following list:

• From the journal, only Ledger Type commitment is available, as allocations are done from the Fund Allocation page.
• Select the Fund No., which will populate the Restricted Fund field, to provide information if the fund is restricted or not.
• Select the Funder No. the journal line will be posted to.
• Enter the total Amount for the commitment line.
• Enter the Expiry Date which specifies the date when the commitment expires and can no longer be applied to costs'
• Fill in the remaining fields on the Lines. Hover over a field to read a short description.
• Set up more dimensions from page action Line -> Dimensions.
• Post the Journal Line from page action Post.

View the posted journal line by opening Fund -> Ledger Entries.

5 - Reclassification of Entries

The Reclassify Entries function can be used for special cases. It can be used to make corrections and reclassify the whole amount of commitments from one fund to the other, or the remaining amount on a commitment.

Reclassify Entries

Choose the 🔎 icon, enter Fund Ledger Entries, and then choose the related link. Select a fund commitment ledger entry which you would like to reclassify to another fund.

• Navigate to Functions action and select Reclassify Entries.
• Select the Move to Fund No., which determines the new fund where the amount will be transferred and create a new commitment line.
• Select the Date Selection which determines if the new and the reversing entries will have the Original Posting Date or a New Posting Date.
• Select the Posting Date if you selected New Posting Date on the option above.
• Enter the Amount to Move to the new fund. The Available Amount is the remaining amount available on that commitment line.
• Select OK, and two new lines will be created; a reversal line, and a new line to the selected fund, with the selected amount to move.

6 - Apply entries

The Apply entries function can be used to make corrections on posted fund ledger entries and close open debits or credits. You can specify the amount to apply. Closing fund ledger entries keeps fund and funder statistics, account statements, and so on, up-to-date.

Apply Entries

Choose the 🔎 icon, enter Fund ledger entries, and then choose the related link.

• Select the line with the entry that will be the applying entry.
• Choose the Apply entries action. The Apply fund entries page opens showing the open entries for the fund.
• Select the lines with the entries that you want the applying entry to be applied to, and then choose the Set applies-to ID. action.
• For each line in the Amount to apply field, enter the amount you want to apply to the individual entry. If you don’t enter an amount, the maximum amount is applied. At the bottom of the Apply fund entries page, you can see the specific amount in the Applied amount field.
• Choose the Post application action. The Post Application page appears with the document number and the posting date of the applying entry.
• Choose the OK button to post the application.

On the ledger entry list, on the line that contains the ledger entry that was fully applied to, you can see that the Open check box isn’t selected.

To correct an application of fund entries

When you correct an application, correcting entries are created and posted for all entries. The correcting entries are the same as the originals but have an opposite sign in the Amount field. The correcting entries include all fund ledger entries derived from the application. The entries that were closed by the application are reopened.

Choose the 🔎 icon, enter Fund ledger entries, and then choose the related link.

• Select the relevant ledger entry, and then choose the Unapply entries action.
• Select the lines and then choose the Process -> Unapply action.
• Press Yes to unapply the entries.

On the ledger entry list, on the line that contains the ledger entry that was unapplied, you can see that the Open check box is selected.

7 - Create Allocations

The fund allocation allows you to create and post fund reservations and usage, by distributing the committed funds based on the agreements and conditions. Posting these fund reservations, results in creating fund ledger entries. It is possible to reserve from project or contract level. To create allocations, go from Project -> Actions -> Fund Allocations.

General

The General fast tab shows information regarding the reservation and usage for the project or contract, depending on what level you select to do the process.

Reservation

• The Budget Amount (LCY) shows the budgeted amount to be reserved, in local currency. This includes already reserved amounts. This field can also be updated manually.
• Fields Amount to Reserve (LCY) and Reserved (LCY) show respectively the amounts to be reserved, and currently reserved in local currency.

Usage

• The Usage Cost Amount (LCY) shows the total cost amount of usage to be posted, in local currency. This includes usage already posted towards commitments.
• Fields Amount to Use (LCY) and Usage Posted (LCY) show respectively the amounts to be used, and the amounts used and posted, in local currency.

Filter Options

For some projects, only certain types of usage can be funded. By limiting the types of expenditure when allocating funding, it can be ensured that funds are not spent on disallowed expenditure.

It can be defined on each allocation whether certain kinds of usage are excluded. As the usage must be backed by reservations, the limitations must also apply to the budget amount.

• Basic A number of filter fields are shown which can be used to filter in the most common scenarios. The fields are: Exclude Resources, Exclude Items, Exclude G/L Account, Task Filter
• Advanced The field Included Budget will show a summary of the filter defining the allowed usage. Drill-down of the Included Budget field opens a filter page where the fields of planning lines (budget entries for PGS) can be selected and filtered. The field Included Usage will show a summary of the filter defining the allowed usage. Drill-down of the Included Usage field opens a filter page where the fields of a job ledger entry can be selected and filtered.

The Included Budget filter is applied when getting the budget amount to the allocation. The Included Usage filter is applied when getting the usage amount to the allocation.

Create and post reservation lines

A fund reservation is a process by which a specific amount of funds is set aside for a specific project or contract, without actually transferring the funds. It is a temporary hold on the funds, which ensures that they are available when needed for the intended purpose.

To create reservation lines, you can take from a fund, a funder, a specific commitment entry no. or a mix of all the above. This depends on the certain conditions or expectations. Reservation Lines are created to cover and match the budget on the project/contract.

• To create a new line, select either a Fund No., Funder No., Commitment Entry No. or a mix of all these fields, based whether you want to take money from the fund, funder, or a specific commitment. Based on these, the field Avail. to Reserve (LCY) is updated with the amount available to reserve on commitments.
• Select the Reserv. Method which specifies the field that is updated for every budget change. If by amount, the % of budget is updated. If by %, the amount to reserve is updated.
• Set % of Budget if the reservation method is by “%” which specifies what percentage of the budget should be reserved.
• Set the Amount to Reserve (LCY) if the reservation method is by amount which specifies the amount to be reserved, in local currency. This includes already reserved amounts.
• Post the reservation lines from Actions -> Reservation -> Post Reservations. Notice that Reserved (LCY) field is updated with the posted amount.

Create and post Usage

After the reservation lines are posted, you can post the usage. The Amount to Use (LCY) is the same as the reserved amount.

• Post the usage lines from Actions -> Usage -> Post Usage. Notice that Usage Posted (LCY) field is updated with the posted amount. If posting usage to G/L is active on Funding Setup, the same amount will be posted to general ledger according to the accounts set in Fund Posting Setup.

Reverse usage and reservations

Reversing a fund reservation in fund management means releasing the funds that were previously set aside or reserved for a specific project/contract. This can happen for various reasons, such as:

1. The original purpose for which the funds were reserved is no longer relevant or necessary.
2. The project for which the funds were reserved is cancelled or delayed.
3. The fund manager identifies a better investment opportunity for the reserved funds.

Once a fund reservation is reversed, the funds become available for other investments or purposes, depending on the fund’s investment strategy and objectives.

Reverse usage

1. To reverse the usage entries, go to Actions -> Usage -> Reverse Usage.
2. Posted usage is reversed, negative fund ledger entries are created.
3. If Post usage to GL is active, the reversal is created for the general ledger too.

If you want to reverse the usage on one of the funds, not all, set the Total Amt. to Use to 0 and post.

Reverse reservation

1. To reverse the reservation, go to Actions -> Reservation -> Reverse Reservations.
2. Reservation is reversed, negative fund ledger entries of type reservation are created.

If you want to reverse the usage on one of the fund reservations, not all, set the Total Amt. to Reserve to 0 and post.

Edit in Excel

This functionality streamlines the process of modifying reservation lines and brings greater efficiency to the fund management process in our application.

1. From Fund Reservation Lines -> Edit in Excel.
2. An Excel file is opened, and the lines can be updated from there.
3. After updating the lines, publish the changes, and they will be published in Fund Reservation Lines.

Batch Posting Allocations

You can batch-post allocations for all projects from the Fund Allocations list, selecting multiple projects for reservation and usage posting. If any posting encounters issues with a particular project, a list of errors will be provided to help identify and resolve the related project or lines.