The main hierarchy of budgets, funds and ledgers in Finance is as follows:
- Budgets are money for a particular financial year within a fund
- Budgets belong to funds
- Funds belong to ledgers.
Funds can be assigned to Groups, and Groups work across Ledgers. So a Group can bring together information from funds across ledgers, and you can view summaries/totals for a fund group (across ledgers)
Funds can also have Types assigned to them, e.g. Approvals, Books, Gifts, etc. Funds Types work within a single ledger.
Ledgers provide a way of strictly dividing up Funds if they need to generally work separately. You might use separate ledgers where parts of an organisation have a strictly distinct budget, or where you have a set of budgets on a different financial year cycle