FUND FEES ASSESSMENT 

 

The Fund Fees Assessment calculation is unique to each foundation based on the policy outlined in your fund agreements. Based on those parameters, a Fund Fee Formula is established in your system. 

Fund Fee FORMULA 

 

 

To view/edit the Fund Fee Formula(s), navigate to the Tools workplace, then choose Fund Fee Formulas. 

 

Click on the Name of the formula to open and view the details. 

 

 

• Name – The assigned name of the selected formula 
• Fund Fee Formula – The equation used to calculate Fund Fees 
• Revenue Account – The revenue account to be used for the fund that will receive the fee income 
• Expense Account – The expense account to be used for the funds that will be charged the fee 
• Revenue Fund -- This is an optional field in which you may select a fund to receive the revenue from the fund fees rather than the operating fund. If this is blank, the operating fund as determined in Accounting Settings will receive the revenue. 
• Fund FetchXML – Additional parameters that can be used in the formula, e.g. custom fields. 
• Active – The status of the formula (Yes = Active/No = Inactive). Note: only one Fund Fee Formula may be active at a time. 

 

(If fund fees are based on something other than Net Assets, please review the “Addendum: Custom Account Filters” section at the end of these instructions)

 

Fund Fee Assessment Variables

 

Certain formulas may reference fields on the Fund form including: 

Fee Percent – A percentage used to calculate fee amount 

Fee Amount – A fixed amount to be used as the fee amount 

 

Note: These fields are not used for all clients depending on definition of the Fund Fee Formula in use. Consult our Support Team if you are uncertain which variables are in use for your calculation. 

 

Select Auto-Post Setting

 

Auto Post allows users to post Fund Fee transactions automatically once they are created by the Fund Fees Assessment process. To choose this setting: 

1. Navigate to Business Central
2. Search for General Ledger Setup 
3. Scroll to the Akoya section of the form 
4. Locate the Auto Post Fund Fee toggle and select the desired setting 

 

If Auto Post Fund Fees is off, a journal entry is created by the process and stored in the Fund Fee General Journal. If Auto Post Fund Fees is on, the entry created by the process is automatically posted to the general ledger. 

 

 

Running Fund Fees Assessment

 

1. From the Actions select akoyaGO, then select Fund Fees Assessment

 

 

2. Set or confirm the following parameters: 
   1. Ending Date - The ending date of the averaging period to be used for the calculation
   2. Averaging Period - The number of months over which the balances should be averaged for the calculation.
   3. Number of Months - The number of months the fee will cover (the fee period)
   4. Posting Date - The date on which the adjusting entry should be posted

 

3. Once these values are set select Calculate Adjustment. 
    
4. A loading screen will appear and end with a message indicating a calculation is happening in the background.

 

 

5. You may now leave the Fund Fee Assessment form as fund fees are being calculated in the background. The time the calculation takes will depend on the number of funds, the length of the averaging period, and volume of transactions in the period. You may check the status of the calculation at any point using the Refresh Status button.

 

 

 

6. Once the status updates to “Calculated” choose Review Adjustments. This will open a new window with the results of the calculation.

 

 

7. Results from the calculation contain information used in the calculation as well as the results of the calculation.These results can be exported by choosing Page, then Open in Excel. 

 

 

8. After reviewing the calculation choose Close. You will be prompted to apply fund fee adjustments. Choose Yes to continue or No to cancel.

 

 

Note: If you have auto post turned on for Fund Fees in the General Ledger Setup, selecting Yes will post the adjustment immediately. If auto post is turned off, the journal entry will be stored in the General Journal named Fund Fees and can be posted from there. 

 

Post Fund Fees Assessment

These steps only apply to clients where Auto Post is turned off for Fund Fees!

 

1. To review and post fund fees navigate to Finance, then General Journals. 

 

2. Open the Fund Fees journal.
3.  

 

3. The journal entry previously calculated should be displayed. This entry can be edited prior to posting or deleted if needed.
    

 

4. To post the entry after reviewing choose Post/Print then Post.

 

5. 

 

Addendum: Custom Account Filters

 

If funds fees are based on balances other than Net Asset balances (typically accounts 3000 through 3999) a custom account filter should be used. If you do not see the Custom Account Filter on the Fund Fee Formula form, please contact our Support Team and it can be added for you.

 

 

Custom Account Filter

 

The Custom Account Filter lists which G/L accounts will be used when Fund Fee Assessment determines each funds’ average or ending balance. If this field is blank the process uses Net Asset accounts automatically.

The filter is written in the same context that Business Central filters are written. A range is expressed as two accounts separated by a “..”. The example below would indicate only accounts 1000 through1299 will be used when considering balances.

 

 

To consider separate accounts that are not part of a range the “|” symbol is used (shift + backslash on most keyboards). The example below would indicate only account 1001, 1100, and 1110 will be used when considering balances.

 

 

Both filter types are commonly combined to get the exact accounts used for the process. In the example below accounts 1000 through 1200, account 1350, and accounts 1400 through 1999 will be used when calculating balances for fund fees.

 

 

Fund Fee Formula

 

By default, the balances used by fund fee assessment are Net Asset balances. In Business Central, Net Assets normally carry a credit balance. Due to this the Fund Fee Formula needs to be adjusted based on the normal balance of the accounts listed in the Custom Account Filter.

In the example below asset accounts are being used. Since assets normally carry a debit balance (opposite the normal Net Asset credit balance) the average daily balance function needs to be multiplied by -1.