When using funding sources with budgets, you have the option of enabling allocations mode. When using spend plans, allocations are always enabled. When allocations are enabled, your entire organization must use funding sources to allocate funds to OUs and projects. Allocations offer a high level of restriction and control over your funds.
When allocations mode is on:
- All budgets must be associated with at least one funding source.
- Funding sources must be placed at the top of the organization.
- Funds must be allocated from funding sources to budgets.
When allocations mode is off:
- Associating a budget with a funding source is optional. You can attribute funds to budgets instead of drawing funds from funding sources.
- Funding sources can be placed at any level of the organization.
By changing the allocation mode to off when you have already created budgets:
- Funds will no longer need to be allocated in order to be associated to project budgets.
- Any budgets currently associated to a funding source will remain unchanged.
- For OUs that have received allocations previously, all descendant projects will have access to budget against that funding source. If you would like to adjust which OUs (and their descendants) have access to a funding source, you can do so from the funding source edit page.
By changing the allocation mode to on when you have already created budgets:
- Any existing budgeted amounts that are not already associated to a funding source will be associated to a single funding source that is automatically created.
- Going forward, funds will need to be allocated to parent OUs in order to be associated to project budgets.
- Any budgeted amounts currently associated to a funding source will automatically be allocated down to the necessary parent OUs.
- If there is a funding source tied to a non-top level OU, it will automatically be reassigned to the top OU and generate allocations.
- OUs that do not currently have descendant projects with budgets associated will not have access to the funding source until an allocation is made.
For more information about enabling allocations mode, see Financial Settings.
When using allocations, funds are allocated to top-level OUs and then divided between projects using project budgets or spend plans.
You can only allocate funds from parent OUs to its descendant OUs. You can allocate funds from OUs at the top of the OU structure to the bottom of the OU structure in a single operation. This prevents you from having to allocate the same funds three times when you want to allocate to a child OU that is three levels down.
To allocate funds to a child OU:
- Navigate to Financials > Allocate Funds.
- In the Source OU field, select an OU where there are funds available.
- In the Destination OU field, select the OU where the funds will be transferred.
- In the Funding Sources section, enter the amount you want to allocate to the destination OU from each funding source.
- (Optional) Enter a comment about the allocation.
- Click Apply.
You can move funds from a child back to a parent OU by recalling the funds. You can recall up multiple levels in a single operation. Keep in mind that funds cannot be moved from one OU to another at the same level—they must be moved from parent to child or child to parent.
To recall funds from an OU:
- Navigate to Financials > Recall Funds.
- In the Source OU field, select the OU that contains the funds you want to recall.
- In the Destination OU field, select the OU where the funds will be restored.
- In the Funding Sources section, enter the amount you want to recall from the source OU for each funding source.
- (Optional) Enter a comment about the recall.
- Click Apply.
You can view a list of every allocation and recall that has been made on an OU.
To view an OU's allocation history:
- Navigate to Financials > Allocation History.
- In the OU dropdown menu, select the desired OU to display its history.