Ongoing fund fees
You can track the amount of ongoing fees for the fund and capitalize them at the end of the period. Fees are calculated when you calculate NAV. When you accept NAV, fees are accrued on a separate accrual account. The details of this workflow are described in Workflows and NAV statuses. If you need, you can also 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. To learn more about separate fee calculation, see Fee calculation workflow. Finally, you can allow ad-hoc fee calculations for your fund: for details, see Non-scheduled calculations.
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. Fee capitalization can be done at any interval, depending on your fund's rules and practices.
To set up fee accrual and handle fee capitalization, follow the steps in Calculate fund management fee and Calculate fund performance fee.
Fee calculation workflow
If you set a separate schedule for calculating and accepting fees, your fund shows the following statuses in addition to the NAV calculation statuses: "Pending fees", "Fees calculated", "Fees rejected" and "Fees accepted". The fee calculation status helps you keep track of your fee calculation cycle and calculate fees on time.
The statuses for the full 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 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).