You can use set rate distributions when you need to calculate and report a set distribution rate for each class of a multi-class fund based off of a “base class” rate. You cannot use fixed distribution rates for this scenario because fixed distributions require that you input all class rates prior to processing.
When you use set rate distributions, you can add a defined distribution period and set rate to the base class. The system can calculate a class-specific expense differential and apply it to the non-base class rate. When you initially set up up the base class’s set rate, you can specify the accounting basis from which the expense differential process retrieves its expense balances. In cases where a class’s set rate is negative, the system allocates that class’s negative income across the other positive classes. On the final day of a distribution period, the system sums the base class daily rates for the period to ensure that they are equal to the total set rate established for the period. If not, the system makes an adjustment to the final day’s rate. Lastly, you can use a manual override set rate panel to review the final daily rate for each class and you can manually override the rate if an adjustment is needed.
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