Accounting for Sections

If your nonprofit has sections, the accounting information for those groups appears at the main platform level and is configured there.

• What is a Section?
• Documents
• Settings
• Advanced Options

What is a Section?

A section is an entity that is legally dependent on a nonprofit.

To learn more about advanced groups and the difference between a section and a nonprofit, see our article: How Advanced Groups Work

Please note: unlike a section, a nonprofit defines its own accounting settings. In addition, entries are not consolidated at the main level, and accounting is kept separate.

One consequence of this dependency shows up in accounting: all accounting data is consolidated at the nonprofit level that holds legal existence. This means that any information entered at the group level will also appear at the main platform level.

Wondering whether your organization is set up as a section? Here are a few quick ways to check:

• There is no Settings sub-tab in the Accounting menu;
• In the main menu, going to Settings > Accounting takes you to a page stating that the nonprofit is not a separate legal entity;
• Under Accounting > Documents, there is no Statement of Financial Position tab.

Documents

A section has access to these four documents:

• Expenditures-Revenue
• Profit and Loss
• Journal
• General Ledger — limited to class 6 and 7 accounts only

All other documents (Trial Balance, FEC, Statement of Financial Position, and the General Ledger for all account classes other than 6 and 7, etc.) are only accessible at the main platform level. These documents display all information from the platform and its sections, with no distinction between them.

If you are at the main platform level, you can still filter accounting information by section in those same three documents (Expenditures-Revenue, Profit and Loss, and Journal) by using the "Group" filter and clicking Search.

Settings

Because your group is legally tied to the main platform, your accounting settings are limited.

Bank Accounts

By default, you can use your own bank accounts and configure the details yourself (account name, IBAN, etc.).

• If another section in your network wants to use your bank account, you can transfer ownership to the main organization.
• The main organization can then share access to that account with any groups that request it.

By transferring ownership of your account, you lose the ability to edit it, archive it, or manage bank reconciliation. However, existing book entries will remain in your group's accounting.

• If instead you want to use the main platform's accounts, no configuration is needed on your end. You have access to all of the main organization's accounts by default, though the main organization can also choose to refine permissions on a group-by-group basis.

Restrictions:

Please note: if the account is the section's only bank account, ownership cannot be transferred.

The same applies if the account has been verified — either as a Business Account or for Online Payment.

At least one account is required to use accounting and/or online payment features.

Account verification includes an identity check of the account's Legal Representative, so ownership of a verified account cannot be transferred.

Accounting Period, Opening Balance, Chart of Accounts, and Third-Party Accounts

The accounting period and opening balance are set by the main platform. As a result, the accounting closing is also decided at the main platform level.

The chart of accounts and third-party accounts are managed at the main platform level.

If you need to add accounts, reach out to an administrator of the main platform.

Advanced Options

If the main platform has enabled Allocation Management (Learn more) and you want to add new Funds, contact an administrator of that platform.