Accounts

Prepare charity accounts in Accounts Production Advanced

These instructions are for preparing charity accounts using the Practice Charity master templates for incorporated and unincorporated accounts.
  1. Simple charity — only 1 unrestricted fund
    note
    A simple charity is defined as having only 1 unrestricted fund. The Practice Charity (Incorporated/Unincorporated) Master template includes the standard charity nominal code list and account assignment, like other client types. The standard nominal codes are pre-assigned and treated as unrestricted funds. They produce simple charity accounts without any other funds works, much the same as for other client types.
  2. In the journal entry screen, leave the
    Funds
     and
    Resources
     charity-specific columns blank so that all postings are already assigned and treated as unrestricted funds.
  3. You can run the
    All Account Codes
     report from the Reports list before posting journals.
    note
    This report shows where each nominal code is assigned and consequently which section of the report values will appear within. If it's not in the reports list, select
    Browse
    .
    If you have a network installation, you're likely to find reports at
    C:\Program Files (x86)\Digita\Accounts Production Advanced\Templates\Reports
    .
    If you use Digita Virtual Office, you're likely to find reports at:
    Y:\Digita\Accounts Production Advanced\Components\Reports
  4. Charities with multiple funds
  5. In the journal entry screen, use the
    Fund
     and
    Resource
     columns.
    note
    In the following example, there are 2 postings to code 001.00 — Donations and legacies. These appear as separate codes on the trial balance, each gets a suffix relating to their fund and resource allocation.
    Journal Entry screen. Grid row 1 has Account = 001.00, Account Description=Committed giving, Fund=Unrestricted income fund (U1) and Resource = Doneations and legacies (DL). Row 2 is the same, but Fund=Restricted income fund (R1).
    There's no concept of subcodes, so this will show differently on the trial balance. The new nominal codes are
    001.00|F:U1|R:DL
    and
    001.00|F:R1|R:DL
    .
    Funds
     and
    Resources
     are already set up in the application, but more may be needed.
    Allocating Funds and Resources in the journal entry screen is done solely to assign the suffix to the end of the nominal code, which helps when assigning these newly created codes.
    A Trial Balance. The 1st row has code 001.00 F:R1 R:DL, the 2nd row has code 001.00 F:U1 R:DL
    important
    Balance sheet items should not have a resource assigned to the row at the journal posting.
  6. Go to the
    Import/Account Assignment
     tab and select
    Account Assignment (Master) Maintenance
     to assign any newly created codes.
    note
    These will show next to the unassigned codes list.
  7. Assign the new codes in 2 places: the Balance and Fund categories.
    note
    These categories are the X axis and Y axis of the report's tables. The Balance category represents the X axis (the row of the SOFA where the codes appear). The Fund category represents the Y axis (the column of the SOFA where codes appear). Until you map the codes are mapped in both categories, the application won't populate the report.
    Report table in Design view. At the top are 5 columns. On this Y axis, there's an label of Fund category assignment. On one of the rows of the table (the X axis) there's a label of Balance category assignment.
  8. Map the codes in the
    Balance
     (X axis) category first.
    note
    The Resource abbreviation tells you where to assign the code. In this example, it's DL (donation and legacies), so you would need to map the codes in the Donations and legacies section of the Income folder.
    Showing the Balance category folder tree. The SOFA, SOFA5 , SOFA3, SOFA1 1, SOFA1 1 1 Donations and Legacies, and SOFA1 1 1 3 Regular giving and capital donations folders are expanded, showing the position of the 2 codes 001.00 F:R1 R:DL and 001.00 F:U1 R:DL.
  9. Once you've assigned all codes with values posted to them in the
    Balance
     category structure, select
    Apply
    .
  10. Change the
    Category structure
     menu to
    Fund
     to map which fund the postings relate to (Y axis).
    note
    Only assign codes
    001.00
     to
    499.99
     and opening balance codes in the
    Funds
     category structure.
    The important part of the code to this category is the fund suffix (F:U1/R1). This shows where the codes need to be assigned.
    001.00|F:U1|R:DL
     to Unrestricted income and
    001.00|F:R1|R:DL
     to Restricted income
    Funds category folder structure. The Funds, UF - Unrestricted Funds, and RF - Restricted Funds folders are expanded.
  11. When you've assigned all codes, select
    OK
    .
    All figures posted will now appear correctly in the report. At this point you can assign the codes to report on funds individually. This is primarily for charities with multiple restricted funds that need more in-depth analysis.
  12. Create new accounting periods
  13. Go to
    Financial Period
    , then select
    New Financial Period
     to create a new accounting period in the normal way.
  14. Opening balances
    note
    You need to calculate opening balances manually on a per-fund basis then post as a manual journal.
    Using pre-existing code combinations ensures consistency between years and results in fewer new code combinations to assign through Account Assignment.
    To post to pre-existing codes, you can use the following steps to copy forward a journal with codes but without values from the prior year to use it for posting of opening balances.
  15. Go to the
    Journals
      tab.
  16. Select the sub tab for the prior year.
  17. Right-click over a journal to select
    Copy
    .
  18. Return to the
    Current Period
     tab, right-click in the space after the journals, then select
    Paste without value
    .
    note
    • This will create a blank journal with the pre-existing nominal code combinations, making posting the current year’s figures much easier
    • You may need to use some new codes and combinations, which you'll need to assign.
    • However, using this method reduces the number whilst also ensuring greater accuracy and consistency.
    .

This article applies to:

  • PRODUCT: Digita Accounts Production Advanced