How to Remove Unused Spending Balances for New Fiscal Year

Some foundations require that any dollars left unspent at the end of the year in their available to spend fund balance must be moved back to the net investment earning balance before the new spending amount is transferred over.  The easiest way to do this is to use the Allocation and Entries utility.

1. Go to General Ledger > Journal Entry supertab > Automatic Entries tab and run the Allocation and Entries routine.
2. For selections choose period 00 through the ending period desired - typically 12
3. In Base allocations on field choose Periods Selected.
4. In Base allocations on the Fund balance choose the Fund Balance with the unspent amounts - for most foundations this is the 3rd balance.
5. In the Percentage to allocate enter 100%.
6. For a typical 3 fund balance situation, enter a T3 account as the Debit and the T2 as the Credit.  These would most likely be the same accounts you use when posting your spending policy
7. Click OK, then on the Fund Selection Screen choose something to filter this to be just the correct funds- perhaps fund class, and then click Run Report.
8. Examine the report for accuracy, then click Create G/L Entries at the top of the viewer, fill out the journal template and click OK. Double check that the debits and credits are correct.
9. Run the Edit and Post procedure for the entries. 

Run a Reports > General Ledger > Fund Balance report for the same filter and make sure the 3rd balance is now $0