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Adjust Principal and Spendable Net Asset Balances

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Adjust principal and spendable net asset balances in CommunitySuite based on your previous system. The overall net asset total will match, but the principal and spendable net asset balances will not. This is due in part to the immediate principal and spendable impact on the general ledger. Remember that Net Asset accounts have a natural credit balance, so you will need to credit the account you want to increase and debit the account you want to decrease.

Complete this process as soon as possible after go live.
 

Run reports in your former system and in CommunitySuite to compare balances and see what adjustments need to be made.

  1. Run a Fund Balance or Trial Balance report in your previous system as of your migration date.
    • Export the report for future reference.
  2. Run two CommunitySuite reports.
    • Fund Report - This custom report should include all funds.
      • Export this report as a .csv file.
      • This file will be used to complete a VLOOKUP that will add the Fund ID into the Fund Balance report.
    • Fund Balance report - Run this report with the migration date as your static date.
      • Export this report as a .csv file.
      • Use VLOOKUP to add the Fund IDs from the Fund report to this report. Save this final report.
  3. Run a VLOOKUP between the two Fund Balance reports to determine the adjustment amounts.
    • It is recommended you use the fund Short Name since it is a unique field in both system reports.

A journal entry can be created to align the CommunitySuite principal balance for funds with the previous system.

  1. Record a Journal Entry for the difference between the two principal balances.
    • Confirm that both systems are in agreement regarding the principal balance.

A journal entry can be created to align the spendable balance of endowed funds in CommunitySuite to the previous system.

  1. Navigate to the Distributions page and click Clear Spendable in the left-side menu.
    • Enter the As of Date and Reason fields.
      • It is recommended that the As of Date is the same date as your entries in the process.
    • When the spendable balance is set to zero and then re-established, the origin of the values is easier to see. 
    • You will be prompted to open any closed funds in order for the spendable balance to clear.
  2. Compare the spendable balance of endowed funds between the previous system and CommunitySuite.
  3. Record a Journal Entry for the difference between the two spendable balances.
    • Confirm that both systems are in agreement regarding the endowed funds' spendable balance.

CommunitySuite Spendable Difference

The biggest difference between most systems and CommunitySuite is around non-endowed funds. In CommunitySuite, anything that is not directed to principal or spendable is automatically directed to the default fund balance account. This means that when reviewing non-endowed funds, they will have one fund balance account, the default account. When the spendable balance was cleared, this moved all the balances for non-endowed funds to the default account. For this reason, only a journal entry for the endowed funds was created.

Compare systems for all three accounts: Net Assets, Principal, and Spendable; confirm that all balances align.

Run reports in your previous system and in CommunitySuite to compare balances and see what adjustments need to be made.

  1. Run a Fund Balance report in FIMS as of your migration date.
    • Export the report for future reference.
  2. Run two CommunitySuite reports.
    • Fund Report - This custom report should include all funds.
      • Export this report as a .csv file.
      • This file will be used to complete a VLOOKUP that will add the Fund ID into the Fund Balance report.
    • Fund Balance report - Run this report with the migration date as your static date.
      • Export this report as a .csv file.
      • Use VLOOKUP to add the Fund IDs from the Fund report to this report. Save this final report.
  3. Run a VLOOKUP between the two Fund Balance reports to determine the adjustment amounts.
    • It is recommended you use the fund Short Name/FIMS ID since it is a unique field in both system reports.

Close transfer accounts since they are not needed in CommunitySuite.

  1. Record a Journal Entry to clear out any transfer accounts.
    • This entry is the same as closing the year in the system.
      • For example, zero out Transfers-Available to Fund Balance - Available/Spendable, or clear out the transfer account into each other since these accounts usually net out to zero

A journal entry can be created to align the CommunitySuite principal balance for funds with the previous system.

  1. Record a Journal Entry for the difference between the two principal balances.
    • The balances are the Principal Balance in CommunitySuite and the 1st Fund Balance Account in FIMS.
    • Confirm that both systems are in agreement regarding the principal balances.

A journal entry can be created to align the spendable balance of endowed funds in CommunitySuite to FIMS.

  1. Navigate to the Distributions page and click Clear Spendable in the left-side menu.
    • Enter the As of Date and Reason fields.
      • It is recommended that the As of Date is the same date as your entries in the process.
    • When the spendable balance is set to zero and then re-established, as described in the following section, the origin of the values is clearer.
    • You will be prompted to open any closed funds in order for the spendable balance to clear.
  2. Compare the Available/Spendable balance of endowed funds between the FIMS and CommunitySuite.
  3. Record a Journal Entry for the difference between the spendable balance and the 2nd fund balance account in FIMS.
    • Confirm that both systems are in agreement regarding the this specific fund's balance.

FIMS and CommunitySuite Spendable Difference

The biggest difference between FIMS and CommunitySuite is around non-endowed funds. In FIMS, you most likely used the Available Fund Balance account for any non-endowed/pass-through funds. In CommunitySuite, anything that is not directed to Principal or Spendable is automatically directed to the default fund balance account. When reviewing non-endowed funds, they will have one account balance as they did in FIMS, but it will be the default account in CommunitySuite. When the spendable balance was cleared, this moved all the balances for non-endowed funds to the default account. For this reason, only a journal entry for the endowed funds was created.

Consider the following: 

  • Consider closed funds. You may need to re-open funds temporarily to record journal entries and clear out spendable balances.
  • Ensure your journal entry handles balances that are not on their normal side. You may need to swap the general ledger accounts in the debit/credit column.
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