Income & Expenses

An invoice can arrive before payment. Interest can be earned before receipt. Income and Expense records describe what the fund entity earned or incurred; cash records describe when money moved.

Record the event and its period

The event date and service or earning period identify when the cost or income belongs economically. A payment or receipt date identifies when the bank account changed. Keeping these facts separate lets accounting recognize an amount owed or receivable before it is settled and lets FundOps trace a later payment to the existing item.

Consider a hypothetical USD1,000 administration invoice for December services, paid the following January. The expense belongs to the fund entity and should identify its expense date, USD amount, vendor, description and relevant December service period. Link the invoice to the expense.

The example places the cost and payable in December and the cash settlement in January. It illustrates why the existing expense remains the source of the cost when the payment is linked later. Posting the payment as a new expense as well would count the same cost twice.

The income equivalent is December interest earned but received in January. The income record identifies the earned event and period; accounting records the receivable where required; the later receipt settles it. Continue to Posting & Adjustments for recognition and settlement.

Identify who participates

An expense belongs directly to its Entity. If classes or subscriptions share it, an allocation scheme connects the item to those participants and percentages. Allocations works through the three allocation record types and a 60/40 expense.

A missing allocation does not delete the expense. It can leave the item out of a class-attributed timeline or prevent a complete allocation. The saved core Cedarbridge USD1,200 expense illustrates this: it exists and has a cash payment, but no qualifying expense allocation for the class timeline. First compare Expenses and Incomes with Allocations → Data → Allocated Items to find missing item links. FundOps Recon → Allocation Coverage checks existing allocation relationships and omits expenses and incomes with no Allocated Item link. Use that control after a link exists; do not create another expense to make it appear.

Connect payment to the item it settles

For the hypothetical December invoice, suppose January bank data shows a USD600 payment. Link its cash split to the expense. The payment explains USD600; USD400 remains outstanding. Keep the invoice amount and the unpaid amount distinct.

If a later USD900 wire covers the remaining USD400 and a separate USD500 invoice, its cash treatment must explain both purposes. Separate splits can identify each amount; a split supporting multiple activity links must record the amount applied to each. The splits must explain the bank transaction, and the links must not apply the full USD900 twice.

Income uses the same separation between amount earned and cash received. A cash link is settlement evidence; it does not determine the accounting period of the original event.

Review in the owning apps

Open Incomes & Expenses to inspect Income and Expense records, their Rollup and Record Explorer. Use Record Explorer to inspect the event's related records.

For a missing payment, follow the existing cash splits in Cash before inserting anything. For a missing payable, receivable or journal, investigate Accounting separately. Recheck the same entity, period and currency after a correction.