Traditional fund accounting

Nonprofits frequently track funds in Sage Intacct, but how the funds are tracked can differ by organization type and accounting practices.

  • Some organizations track funds as balancing and follow traditional fund accounting practices.

  • Other organizations track net asset impact for compliance purposes.

For nonprofits that track funds as balancing, you can identify entities configured for tracking of funds to ensure clarity of purpose for the record.

Depending on whether you have admin privileges, do one of the following:

User Verification path
Admin

Go to the Accounting tab in your Company information, and then ensure that the QuickStart template field is set to Nonprofit.
Non-admin users

Create a new General Ledger account, select the Category field, and search for Net assets.

  • If the Net assets category appears, then your organization uses the Nonprofit QuickStart template.
  • If you see the Category field but Net assets is not one of your options, then your organization uses a different QuickStart template.
  • If you do not see the Category field, then your organization does not use any QuickStart template.

If your organization does not use the Nonprofit QuickStart template, but you still want these categories, reports, and dashboards, contact your account manager to discuss your options.

When using the Nonprofit QuickStart template, you can set the accounting practice election in the Company Information page. This option allows you to choose between net asset fund accounting or traditional fund accounting (track individual balancing funds).

An additional checkbox is added to the Entity Information page when Traditional fund accounting is selected. Select this checkbox to designate the entity as a fund. Ensure that the same tax ID information is used on each fund that belongs within one entity. When Sage Intacct reviews entitlements, we'll then be able to distinguish between individual entities versus entities used for funds.

Enable traditional fund accounting

To designate an entity as a fund, you first must enable traditional fund accounting.

  1. Go to Company > Setup > Company.
  2. Go to the Accounting tab and select Edit.
  3. Select the Traditional fund accounting radio button in the Accounting practice for funds section.
  4. Save your changes.

Designate entities as funds

After enabling traditional fund accounting, review your entities to determine which ones will be marked as funds.

When an entity is designated as a fund, the entity is hidden from view in entity selection dropdowns. Hiding the funds from view allows you to see actual entities in the list, rather than both entities and funds.

Return to the list of entities and repeat these steps to designate entities as funds.