Appropriation
Categories: Accounting, Banking
Think of appropriation as the first step to spending. Basically, it involves setting money aside to use on a project, or for any other particular purpose.
In your regular life, if you want something, you can just go out and buy it (assuming you have the money, or at least good enough credit). Want a new sweater, just order online and it’s yours.
In large organizations, the process is less simple.
When Facebook wants to open a new office in Tokyo, Mark Zuckerberg doesn't just get out his credit card (he could probably afford to put an office building in Tokyo on his credit card, but that's a different story). Many people get involved, meetings get scheduled, lawyers and accountants get consulted. Appropriation is the end result of this process, the point at which the decision to make the expenditure is made.
