Extract costs and taxes as separate transactions
Costs and taxes are recorded in FA Platform as part of the corresponding transaction (such as buy or sell). You can extract them to create individual cost or tax transactions. This allows you to:
Keep track of transaction-related costs in a dedicated fee portfolio.
Create payment instructions to transfer costs and taxes to relevant parties (for example custodians or tax authorities).
Depending on your business case, you can choose to extract costs and taxes into:
The same source portfolios where the original transactions are.
Dedicated fee portfolio – especially useful if you use an omnibus account to manage client's portfolios.
Multiple fee portfolios by custody – especially useful if you use omnibus accounts across multiple custodians.
Setup for extracting costs
To set up cost extraction, create the target portfolios (if needed) and then define the configurations:
Create the target portfolio(s) if you want to extract costs to a dedicated fee portfolio or portfolios. Add accounts in the currencies that are used in the original portfolios.
Go to Tools → Administer → Data aggregation and select the Extraction of costs tab. Fill in the fields:
- Tax type to transaction type mapping
Mapping for taxes to extract.
To extract taxes of type Stamp Duty (with code STA) as transaction type Cost (with code COST), enter STA=COST.
You can define multiple mappings by separating them with a semi-colon, for example STA=COST;TT=COST.
To map taxes without specified type on the transaction, use code "default", for example default=COST.
- Cost type to transaction type mapping
Mapping for costs to extract.
To extract costs of type Advisory fee (with code ADV) as transaction type Cost (with code COST), enter ADV=COST.
You can define multiple mappings by separating them with a semi-colon, for example, ADV=COST;CUS=COST.
To map costs without specified type on the transaction, use code default, for example, default=COST.
- Portfolio for created transactions
A portfolio to create transactions in. Leave the field empty to save the cost transactions in the same portfolio as the original transaction. Note that the portfolio for created transactions must have an account in the same currency as the source portfolio.
- Use custody portfolios instead
An option to extract costs to the custody portfolios. For details, see Setup for extracting costs to multiple fee portfolios by custody.
- Tax 1, Tax 2, Cost 1, Cost 2
Fields in Transaction window to consider when extracting costs.
- Create transactions as hidden
An option to hide the extracted cost transactions in reports and in the Overview.
- Tag for created transactions
A tag to add to the created transactions (if needed).
- Tag for processed transactions
A tag to add to the original transactions from which taxes and costs were extracted.
Click Done
Setup for extracting costs to multiple fee portfolios by custody
You can extract costs to multiple portfolios (for example, one portfolio per custodian):
Make sure that the original portfolios have a custodian contact (Type = "Custody) specified in the Custody field.
Create the following contact-portfolio linking:
Create a technical dummy contact and link it as the primary contact in the target portfolios.
Link the custody contacts to the corresponding target portfolios as a secondary contact.
When configuring cost extraction (Setup for extracting costs), select the Use custody portfolios instead option.
Extracting costs from transactions
Once you completed the setup, you can create cost transactions:
Go to the Transactions view and search for the transaction whose costs you want to extract.
Click Extract costs as separate transactions at the bottom of the view.
Cost transactions appear in either the same portfolio as the original transaction or in the target portfolio(s) you defined in the settings.