🌍 This feature is only available in the following countries: 🇫🇷 France, 🇺🇸 United States.
On Springly, you can activate allocation management. This lets you optimize your budget tracking by clearly identifying your main cost items.
You can now create projected budgets on Springly. To learn more: Using the Projected Budget (video included)
This article covers the following topics:
- What is allocation management?
- How allocation management works
- Activating allocation management
- Creating and managing funds and budget items
- Allocating entries to a fund
- Removing an allocation from entries
Our comprehensive guide on this topic (11 pages) combines theory and practice to walk you through setting up allocation management for your nonprofit. 👉 ACCESS THE GUIDE
What is allocation management?
It aims to explain the financial results of an organization.
- General accounting provides an overall view of the organization's accounts;
- Allocation management (or analytical accounting) provides a detailed view by fund, project, or budget item.
By creating specific funds, you can easily identify how revenues and expenditures are distributed. This produces an analytical result (loss or surplus) for each budget item.
Allocation management is designed to analyze expenditures and revenues by fund:
- It does not analyze results based on accounting accounts;
- Only expenditure (class 6) and revenue (class 7) entries can be allocated.
How allocation management works
Each expenditure or revenue entry can be allocated to one or more funds. For example:
- An operating fund (expenses such as training costs, administrative management, etc.);
- A product sales fund (clothing, merchandise, etc.).
You can then allocate a t-shirt order as follows:
- An amount of $X to the "clothing" sub-fund within the product sales fund;
- An amount of $Y to the "shipping costs" sub-fund within the operating fund.
Once an entry has been allocated, it will automatically feed into the funds you can find in your Revenue & Expenditure report or your Profit and Loss statement.
Activating allocation management on your Springly platform
To activate this feature, go to Settings > Accounting and enable "Funds & Allocation".
If you wish, you can also enable "Direct Allocation". This allows you to directly assign an entry (Expenditure / Revenue) to one or more funds, without requiring you to do so, of course.
Create funds and budget items
This video walks you through creating your funds:
Here are the steps in writing.
Once allocation management is enabled, you can access your fund management page from Accounting > Funds & Allocation, then the Fund Management tab.
Start by creating your first fund. You can then add:
- the budget items linked to your fund;
- other funds and their related budget items.
If needed, you can edit, archive, or delete funds or budget items by clicking the 3 vertical dots next to them.
Archiving funds or budget items lets you reduce the number of funds available for selection and simplify your "Fund Management" page, while still retaining the history of entries allocated to those funds in your accounting records. Archived funds will no longer appear as options when allocating entries.
To display archived funds and budget items, click the button at the top right of the page. You can then unarchive them if needed.
Allocate entries to a fund
This video shows you how to allocate entries:
Here is the detail in writing.
Once your funds are set up, you can allocate your expenditure and revenue entries from Accounting > Funds & Allocation, in the Entries to Allocate tab.
Expenditure and revenue entries (classes 6 and 7) that are unallocated appear here. This means entries belonging to a closed accounting period can still be allocated after the closing has been completed.
To allocate entries, simply:
- Select one or more entries — use the filters to find them quickly if needed;
- Click the "Allocate X entry(ies)" button that appears;
- Choose the budget items and the amount, in value or percentage, to assign across the different items.
If the full amount has not been allocated, a warning message will notify you. You must allocate the entire amount (across one or more budget items) before you can save.
Once an entry has been allocated to a fund, the allocation appears in your accounting documents: Expenditures and revenues, Profit and Loss.
How do I cancel the allocation of an entry?
To view allocated entries or remove an allocation, go to the Allocation History tab from the Accounting > Funds & Allocation page.
There you will find all your past allocations, which you can view, edit, and cancel.
To remove an allocation from an entry, simply find it using the available filters, then click the trash icon on the right side of the row. Once the allocation is deleted, the entry will appear again in the "Entries to Allocate" tab.
To go further:
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