What are Funds & Cost Centers?

Funds

Typically "Operating" and "Reserve" but there could be more...

Funds define what each GL Account is intended to be used for, or how it should be recognized. Think of Operating vs Reserve funds as if they were respectively Checking and Savings accounts. Operating fund accounts take care of the "day-to-day" operations and expenses, while Reserve funds are savings for large capital projects or forecasted maintenance for amenities or common areas in the Association. Accountants will frequently transfer funds from Operating to Reserve bank accounts or vice versa based on the Association's budget and governing documents. 

Every GL Account in Smartwebs requires a Fund, so every posting knows what it's assigned to. The Fund Balance Sheet shows Assets, Liabilities and Equity broken out by fund.

Cost Centers

In traditional Accounting: Cost Centers track activity only in non-revenue-generating departments like HR or IT. In Smartwebs Accounting, Cost Centers track what EVERY activity is intended for regardless of GL Account, Owner, Vendor, etc. Think of Cost Centers as "Departments" where every transaction has an assigned Cost Center.

Every activity in Smartwebs requires a Cost Center: Charge, Deposit, Invoice, Payment, Journal Entry, and every other type of posting.