About purpose-based restriction release

For companies that were created with the Nonprofit QuickStart, you have the ability to generate the release of purpose-based restricted revenues after the restrictions have been met through spending on qualified expenses.

This feature is only available to organizations created with the Nonprofit QuickStart.

Purposed-based restriction releases are designed to pull source amount for release automatically. They then create a revenue release journal entry of corresponding amounts. This style of release includes the setup of a release generation, so that you can routinely generate releases without having to redefine the calculations every time. This helps nonprofit organizations make sure that restricted funds are released efficiently.

Restriction release was designed to sweep for qualified expenses within a designated timeframe to release an equivalent amount of revenue on the designated posting date.

Release restriction offers easy setup and a click-through history for entries created to make it easy to see how releases have been derived and applied.

Purpose-based release restriction can be done at the top level or at the entity level.

How do I generate a restriction release?

Fully enabling and using this feature requires a few steps:

1. Enable restriction release.
   In the Configure General Ledger Advanced GL options section, place a checkmark beside Enable nonprofit restriction release.
2. Grant permission to release funds.

   Enabling NFP restriction release triggers the ability to grant permission to access the Generate restriction release and the View release log menus. Permission is enabled in the Company individual users or roles area.

3. Generate the release. As part of the generation, Sage Intacct automatically gathers the qualified expenses for the period to determine the amount of restricted revenue to release.

What happens next?

Intacct takes the information and creates the release entry. The entry is generated offline. After the entry is complete, Intacct sends an email notification.

After the release is generated, you’ll see the entry in the journal you selected. If the journal and journal entry require approvals, then can go through the approval cycle. You’ll only be able to accept or decline the entry, but not edit it.

While you likely ensure you stay within budget during the spend cycle, as an additional safeguard you can configure Spend Management to stop any possible over-release by budgeting unrestricted revenue per funding source.

Verify the release

Verify the release from the restriction release log.

A snapshot attaches to the journal entry, documenting how Intacct derives the numbers for the release. This helps ensure confidence that the entry was performed correctly.