Workflows and NAV statuses

FA Fund Management allows you to set up and use workflows that handle NAV calculation:

Regular NAV calculation workflow to calculate NAV and fees regularly, for example, every day.
Unofficial NAV calculation workflow to calculate NAV for reporting purposes between the scheduled NAV calculations.

For example, if you have a fund that calculates NAV once a month, you can still calculate unofficial NAV every day to stay on top of the progress. You would have separate schedules set for each workflow.

A separate workflow lets you handle deferrals:

Deferrals and NAV calculation workflow for funds with income distribution. This workflow allows you to run deferral calculation in FA Fund management app and saves the bookkeeping postings before you calculate NAV.

Regular NAV calculation workflow

Regular NAV calculation workflow is used for calculating NAV and fees for your fund regularly, for example, every day or every week. If NAV has to be calculated today, the fund has the Pending NAV status. During the calculation, FA Fund Management check your data and shows you warnings if there is something to pay attention to. You can view all NAV details in the NAV window (double-click your fund). When you accept NAV, FA Fund Management:

Updates the share class prices (see Market data info in FA Back reference for details).
Updates the share class outstanding units (see Basic info in FA Back reference for details).
Updates unit price for the incoming orders.
Generates NAV report and saves it in your fund portfolio’s documents.
Generates accrued fee transactions to the fund.
If configured so, executes incoming trade orders using the calculated unit price and generates transactions to the fund portfolio. Transactions are grouped per share class, settlement date, and type (subscription or redemption). For example, one transaction is generated for all share class A subscriptions with the same settlement date. For more details about generated transactions, see Questions about workflows and NAV statuses. If redemption is part of a switch order that is registered in FA Back (meaning that a customer exchanges fund units for a different fund), FA Fund Management updates the amount of the linked subscription order with the amount received from the redemption.
If configured so, updates fund security allocations in FA Back. FA analyses fund portfolio investments on the NAV date and updates the allocation structure on the fund security in FA Back for the NAV date.
If your FA Fund management app is configured to run deferrals, and if you entered the accounting rules in fund settings (see Accounting tab), the system marks the postings that were used to calculate accrued income as "Reported".

The statuses of NAV calculation for the regular workflow are:

No action: No action needs to be taken today. All calculations are scheduled for the future.
No schedule: Calculation schedules for the fund aren’t set.
Pending NAV: NAV needs to be calculated today. If you didn’t calculate NAV for the previous scheduled days, you need to calculate and accept these first to be able to calculate the current day’s NAV.
Calculated: NAV was already calculated.
Warning: NAV was calculated with warnings that might need your attention (see View warnings).
Rejected: NAV calculation results were rejected by the user. NAV needs to be calculated again today.
Accepted: NAV calculation result was accepted.
Error: NAV calculation or acceptance failed because of the system error on the FA side (this is a rare situation). You can revert the changes and re-run the process using the Roll back failed calculation and Roll back failed acceptance buttons. For details, see Calculate NAV and Accept NAV.

Unofficial NAV calculation workflow

You can schedule unofficial calculation of NAV and fees for your fund between the official dates. This workflow is for your information only. It allows you to follow NAV for your fund. Unofficial calculation doesn’t price share classes nor incoming orders. The calculation workflow is similar to the regular one, without the last acceptance step.

The statuses for unofficial NAV calculation workflow are:

No action: No action needs to be taken today. All calculations are scheduled for the future.
Pending unofficial NAV: Unofficial NAV needs to be calculated. If you didn’t calculate unofficial NAV for the previous days, you need to calculate these first to be able to calculate the current unofficial NAV.
Calculated unofficial NAV: Unofficial NAV is already calculated. This status is shown only in the NAV window.

Non-scheduled calculations

You can calculate and accept NAV or unofficial NAV 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).

Deferrals and NAV calculation workflow

If you have deferral runs set up for your fund, FA Fund Management prompts you to run deferrals each time before you calculate NAV. A deferral run generates and saves bookkeeping postings for income distribution. Then, when you calculate NAV, FA calculates accrued income based on the generated postings. After running deferrals, the workflow is similar to the NAV calculation workflow.

In addition to the NAV calculation workflow statuses, this workflow has a Pending deferrals status which means that you need to run deferrals before calculating NAV.

Deferrals for a fund are set in the Fund wizard, Accounting tab (see Accounting tab). To learn more about deferrals, the Run deferrals section in FA User guide.

Questions about workflows and NAV statuses

What happens if I forget to calculate or accept NAV?

FA Fund Management doesn’t let you skip scheduled calculations. So if you didn’t calculate or accept the pending NAV on the previous day, you have to do this on the current day before you calculate today’s NAV.

How can I set the transaction date and settlement date of client subscriptions and redemptions when I accept NAV?

The transaction date is automatically set to the NAV date (the date when NAV is accepted), so you can't change it.

The settlement date of a transaction is copied from the trade order. If no settlement date is specified in the trade order, FA defines it based on the Fund settings in FA Back. The fund settings let you set the default settlement date as "transaction date + N days" (by default, N=0 and transaction date is used as a settlement date).

My fund has unpaid subscriptions that are executed during NAV acceptance but I am unsure when the client will pay. How do I handle them?

To handle this case correctly, modify the trade order settlement date in FA Back. FA will generate separate transactions per trade order. You can specify the transaction type to use for such transactions (for example, “unpaid”) and manage these transactions separately.

My fund has an incoming trade order from an account in a different currency. How do I handle the exchange?

When you accept NAV, FA Fund management checks if the FX rate is set for the trade order. If the FX rate is missing, it adds the latest available FX rate in the trade order or transaction (if FA is configured to execute trade orders automatically when NAV is accepted).

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