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Net Asset Clear

overview

 

Net Asset Clear is a process that can be run to clear the total spendable balance from endowed funds, and transfer it to another net asset account. This process is usually done in conjunction with the Spendable Allotment when the spending policy does not allow funds to roll their remaining spendable balance forward to the next year.
 

Verify Endowed Status

 

Net Asset Clear will only run for Endowed funds, as indicated by the Endowed checkbox on the Fund form.
 

 

Run net asset Clear

 

  1. Navigate to the Tools workplace in the lower left-hand corner of the page.
  2. Select Accounting Settings from the navigation pane
  3. Open the settings record by clicking on the Accounting System name (Business Central, as pictured below)

  4.  Select the Net Assets form tab
  5. In the Net Asset Clear section, choose the net asset account the spendable balance should be moved to. Note: This process will run for any Net Asset account with the Net Asset Type of "Spendable". If you have more than one spendable net asset account, each net asset balance will be moved individually into the selected "Net Asset Clear to Account".
  6. Select the Clear as of Date. In the example of 12/31/2023, the system will calculate the total spendable balance as of 12/31/23 and zero it as of the same date (e.g. the Posting Date of the entry will be 12/31/23).
  7. Click the Net Asset Clear button to initiate the process. The process generates the necessary journal entries and places them in the Net Asset general journal in Business Central. A confirmation message will appear once the process is complete. Note: the entries are NOT auto-posted.

  8. Navigate to Business Central and open the general journal called Net Assets. Review and post the entries.

 

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