In this guide we will explain the differences in configuration for Finance when using either Fund Allocation or Retained Earnings as part of their year end carry forward process.

Related guides:

How to Allocate Funding In Fund Allocation

Modules > Finance > Maintenance > Global Configuration

The checkbox Use Retained Earnings will be configured once, and cannot be changed.

• If the Use Retained Earnings checkbox is not checked, the system will work with Fund Allocation. If using Fund Allocation the following will apply:
  • Fund Allocation menu option will be displayed (Modules > Finance > Budgeting)
  • Fund Allocation field will be displayed (Modules > Finance > Budgeting > Cost Centre Allocation)
  • Permissions for Fund Allocations will be displayed (Config > Setup > Roles & Permissions >Finance)
  • It will not be possible to create Retained Earnings Ledger Type Ledger Codes (Modules > Finance > Maintenance > Ledger Groups and Codes)
  • Carry Forward will transfer between Fund Codes instead of Retained Earnings for income and expenditure
• If the Use Retained Earnings checkbox is checked, the system will work with Retained Earnings, and as a result Fund Allocation will not be available. If using Retained Earnings the following will apply:
  • Fund Allocation menu option will be hidden (Modules > Finance > Budgeting)
  • Fund Allocation field will be hidden (Modules > Finance > Budgeting > Cost Centre Allocation)
  • Permissions for Fund Allocations will be hidden (Config > Setup > Roles & Permissions >Finance)
  • It will be possible to create Retained Earnings Ledger Type Ledger Codes (Modules > Finance > Maintenance > Ledger Groups and Codes)
  • Carry Forward will transfer between Retained Earnings instead of Fund Codes for income and expenditure

Note: If schools are using Fund Allocation – The Year End Process will look at the Balance Carried Forward from last year for each Fund Code, combine all the Income/Expenditure for the year and these will then be combined to post the surplus or deficit for each Fund Code to the next Financial Year in the Opening Balance Journal (note that any balance in Retained Earnings will automatically be carried forward against the related Fund Code so you don’t need to do anything if you have a balance against your Retained Earnings Ledger Code(s) and are going to be using Fund Allocation.