Set up income distribution
Share class settings for income distribution
Add Income distribution as a fee row in the Share class wizard for each share class. Mark all the fees whose daily values should be part of income distributions by checking the box Include in income distribution. In the example below, accrued management fee has the Include in income distribution checkbox as there aren’t yet postings for the daily fees but their value should anyway be included. Make sure that Income distribution is the last formula defined.
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Fund settings for income distribution
Define income distribution settings in the Income distribution and Order execution tabs of the Fund wizard.
In the Income distribution tab, define bookkeeping account numbers representing the different parts of income distribution. Note that the fee formula for income distribution sums up the value of the postings on these accounts. See Calculate NAV with income distribution for details. Under the account mappings, the checkbox to mark postings reported should normally be selected.
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In the Order execution tab, define the parameters related to the cash transaction flows to the fund portfolio resulting from shareholder transactions. You can use the preconfigured cost and tax types:
Par value. Par value = Sum of amounts in client transactions x Par value (defined in the Fund wizard, Order execution tab).
Income distribution. Income distribution = The sum of accrual in client transactions.
Over or under value. Over or under value = Trade amount - Par value - Income distribution (- Swing if swing pricing is applied).
Swing (if swing pricing is applied).
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