Spendable allotment

 

The Spendable Allotment calculation is unique to each foundation based on the spending policy outlined in your fund agreements. Based on those parameters, a Spendable Allotment Formula can be established in your system.

 

NOTE: If you do not allow your funds to carry spendable values forward from the prior year you will need to zero them out. akoyaGO includes a process called Net Asset Clear which can automate this for you.

 

SPENDABLE ALLOTMENT FORMULA

 

To view/edit the spendable allotment formula(s), navigate to the Tools workplace, choose the Spendable Allotment Formulas entity, and select the

Formula.

 

Within the formula, enter the needed information:

 

Name – The assigned name of the selected formula

Spendable Allotment Formula – The equation used to calculate spendable allotment

Move From Net Assets Account – The Net Asset account from which the spendable amount should be deducted (debit)

Move To Net Assets Account – The Net Asset account to which the spendable amount should be added (credit)

Fund FetchXML – Additional parameters that can be used in the formula, e.g. custom fields.

Active – The status of the formula (Yes = Active/No = Inactive).

 

Note: only one spendable allotment formula may be active at a time.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SPENDING ALLOTMENT VARIABLES

 

Certain formulas may reference fields on the Fund form including:

 

Spend Percent – A percentage used to calculate amount available to spend

Spendable Amount – A fixed amount to be used as the amount available to spend

 

Note: These fields are not used for all clients, depending on definition of the Spendable Allotment Formula in use. Consult our Support Team if you are uncertain which variables are in use for your calculation.

 

 ALTERNATE SPENDABLE FUND

 

You now have the ability to add an alternative Spendable Fund to any existing Fund record. Along with this feature, you have the ability to Hide Spendable Balances in GOfund.

 

If an alternate Fund is applied, the alternate will get the allocation. This will also be the case when Fund Fees or JIA is run. (This is distinct from the parent/child relationship used to link custodial and non-custodial funds).

 

** Do NOT select the same Fund for the alternate as the default Fund number on the record.

 

 

 

 

 

AUTO-POST SETTING

 

Auto Post allows users to post Spendable Allotment transactions automatically once they are created by the Spendable Allotment process. To choose this setting:

1. Navigate to Business Central
2. Search for General Ledger Setup
3. Scroll to the Akoya section of the form
4. Locate the Auto Post Spendable Allotment toggle and select the desired setting

If Auto Post Spendable Allotment is off, a journal entry is created by the process and stored in the Spendable Allotment General Journal.

If Auto Post Spendable Allotment is on, the entry created by the process is automatically posted to the general ledger.

 

 

 

RUNNING SPENDABLE ALLOTMENT

 

From the akoyaGO drop down menu, select Spendable Allotment:

 

 

 

 

 

 

Set or confirm the following parameters:

1. Ending Date – The ending date of the averaging period to be used for the calculation
2. Posting Date – The date on which the adjusting entry should be posted
3. Averaging Period – The number of months over which the balances should be averaged for the calculation; This should always be expressed as months, regardless of the type of average used (daily, monthly, quarterly, etc.)
4. 

Once values have been set, click the Calculate Adjustment button.

 

A loading screen will appear to show that the system is working on the allotment. Once you see the second message below, you can leave the form, as the spendable is being calculated in the background.

 

 

The time the calculation takes will depend on the number of funds, the length of the averaging period, and volume of transactions in the period.

 You may check the status of the calculation at any point using the Refresh Status button

 

 

 

 

 

 

Once the status updates to “Calculated,” choose

Review Adjustments.

 

Results from the calculation contain information used in the calculation as well as the results of the calculation.

 

These results can be exported by choosing Page, then Open in Excel.

 

Note: This page displays certain columns by default, but can be personalized to include other variables.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

After reviewing and closing the detailed calculations, you will be prompted with a message asking if you want to apply the adjustments. Select Yes or No, accordingly.

 

 

 

Note: If you have auto post turned on for Spendable Allotment in the General Ledger Setup, selecting Yes will post the adjustment immediately. If auto post is turned off, the journal entry will be stored in the General Journal named Spendable Allotment and can be posted from there.

POSTING SPENDABLE ALLOTMENT

 

These steps only apply to clients where Auto Post is turned off for Spendable Allotment.

 

 

 

 

 

 

 

The journal entry previously calculated should be visible. This entry can be edited prior to posting, or deleted if needed