Fund Accounting for Government Agencies and Non-Profits

Carillon ERP fully supports encumbrances, fund accounting and grant tracking throughout the system.

Encumbrances

An encumbrance refers to funds committed to fulfilling contracts or purchase orders for goods and services. Government, non-profits, and organizations use encumbrances, commonly in conjunction with fund accounting.

In order to stay within their budget and avoid overspending, organizations utilize encumbrances when issuing purchase orders. Money is set aside for the transaction and is no longer able to be used for other purposes. When the vendor is paid for the purchase order, the amount ceases to be an encumbrance and the payout is recorded.

Fund Accounting Capabilities

Carillon features the following capabilities for Government Agencies and Non-Profits:

• User definable funds
• Unlimited number of funds
• Balance sheets for each fund
• Ability to close funds to different fund balance accounts
• Generation of financial statements by fund
• Full inter-fund transaction capability with automatic generation of inter-fund payables and receivables
• User definable chart of account number
• Chart of account searches by fund