Ongoing fees
FA Fund management helps you keep track of the fund's ongoing fees and capitalize them at the end of the period. You can schedule fee calculations and fee capitalization according to your business flow.
Calculating ongoing fees
Depending on your business needs, you can calculate ongoing fees as a part or NAV calculation, or set up a separate schedule to calculate ongoing fees between the NAV dates as well. Also, fees can be calculated ad-hoc.
Separate schedule for ongoing fees
You can calculate and accrue fees between the regular NAV dates, using a separate schedule for fee calculation. For example, if your fund calculates NAV once a month, you can still schedule unofficial fee updates once a week to get intermediate fees.
If you set a separate schedule for calculating and accepting fees, your fund shows fee statuses to help you keep track of your fee calculation cycle and calculate fees on time.
The statuses for the fee calculation workflow are:
- No action
No action needs to be taken today. All calculations are scheduled for the future.
- Pending fees
Fees need to be calculated today. If you didn’t calculate fees for the previous scheduled days, you need to calculate and accept them first to be able to calculate the current day’s fees.
- Fees calculated
Fees were already calculated today.
- Warning
Fees were calculated today with warnings that might need your attention.
- Fees rejected
Fee calculation result was rejected by the user. Fees need to be calculated again today.
- Fees accepted
Fee calculation result was accepted.
Non-scheduled fee calculations
You can calculate and accept fees outside the schedule, if this is required by your business process. To turn on this feature, allow non-scheduled calculations in the Fund wizard, Schedules tab (see Create a fund).
Capitalizing accrued fees
Fee capitalization can be done at any interval, depending on your fund's rules and practices. You can capitalize fees automatically according to the fee capitalization schedule or create a transaction yourself.
To capitalize the accrued fees, transfer the fee amount from the cash account marked for capitalization to the accrued fee account. The fee account balance then becomes zero.