Capitalize accrued fund fees
Accrued fund fees are calculated every time you calculate NAV. When you accept NAV, fees are accrued on a separate accrual account.
You can capitalize the fees – transfer the fee amount from the cash account marked for capitalization to the accrued fee account. The fee account balance then becomes zero. Fee capitalization can be done at any interval, depending on your fund's rules and practices.
Set up fee accrual and capitalization
To set up fee accrual and capitalization:
Define the fees in the Fund wizard (for the fund-level fees) or in the Share class wizard (for the share class-level fees). Open the Fee structure tab, add the fee formula and other parameters. For each fee, select Use crystallization schedule for capitalization in Additional options.
For details about fee settings, see Create a fund and Add share classes.
Define the fee capitalization schedule. Open the Schedules tab in the Fund wizard, click Add fee crystallization schedule and choose the schedule parameters.
For details about schedule settings, see Create a fund.
Open the fund portfolio in FA Back by clicking
in Fund details, and go to the Accounts tab. Select the cash account you want to use for fee capitalization and mark it with the “Fee capitalization” tag.
After you set up fee accrual and capitalization, FA Fund management creates accrued fee transactions every time you calculate NAV. On the fee capitalization date, the fee amount is transferred from the cash account to the accrued fees account when you accept NAV.