Allocation tables are an additional way to manage expenses within NonprofitCore. These can be accessed from the Expenses page by clicking on the Allocation Tables button. These allocation tables pair with the statement of functional expenses to help automatically allocate expenses to the appropriate services.
Allocation Tables in NonprofitCore
Allocation tables in NonprofitCore require three different pieces of information to be functional:
- A name
- The services associated with the allocation table
- The percentage of the expense to allocate to each service on the table
In addition to the necessary aspects of an allocation table, a default expense account can be selected to further automate the process, and a description can be added to help provide additional context to the purpose of the allocation table.
Allocation Table Use Cases
Due to their flexibility, allocation tables can help whenever expenses need to be split into multiple categories or cannot be allocated to one specific function. An example would be overhead costs such as rent and utilities. These expenses could all be processed individually by specifically splitting the expense amounts, or, as long as they remain at a fixed rate, an allocation table could be used to automatically process the expenses. By selecting the services necessary, and the allocation percentages, processing an overhead expense using this table would automatically record and allocate the expenses to the respective services. Any joint costs could also be considered as expenses that should be processed utilizing an allocation table.
Allocation tables will also help contribute to a cleaner Statement of Functional Expense report by making sure that the expenses are automatically processed through the correct services.