Create or Update a Class Allocation Adjustment Rule
You can create or update a class allocation adjustment rule.
To create or update an allocation adjustment rule:
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In Accounting Center, in the left navigation pane, click Setup > Fund Accounting > Allocation Rules > Create/Update Allocation Adjustment Rule.
You see the Create/Update Allocation Adjustment Rule panel.
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In the Add or Update Class Allocation Adjustment Rule Name Rule field, specify whether you are adding or updating a class allocation adjustment rule.
Options include:
– Add. Default. Used to create a new class allocation adjustment rule and enter related rule criteria.
– Update. Used to enter additional rule criteria for an existing class allocation adjustment rule.
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In the Class Allocation Adjustment Rule Name field, specify the name of the class allocation adjustment rule you are adding or updating.
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In the Chart of Account Name field, specify the name of the Chart of Accounts associated with the class allocation adjustment rule.
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In the From General Ledger Account field, specify a beginning general ledger account for the class allocation adjustment rule.
The system applies the rule to a range of accounts based on the From General Ledger Account and To General Ledger Account fields.
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In the To General Ledger Account field, specify an ending general ledger account for the class allocation adjustment rule.
The system applies the rule to a range of accounts based on the From General Ledger Account and To General Ledger Account fields.
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You can add or update one or more class allocation adjustment rules using the pane in the lower portion of the panel, as follows:
– Right-click the lower pane and select Add Rows.
– Enter the number of rows you want to add on the Enter Rows Count dialog box and click OK. You need to add a row for each additional rule you want to add.
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Class Allocation Adjustment Example
In the following example, you create an allocation rule where you set the Class Method to Relative Net Asset and the class allocation adjustment rule excludes class-level expense payable balances. The relative net assets for class A and O are 4,000,000.00 and 2,850,000.00 respectively. The system then subtracts the excluded class level balances from the relative net asset amount in order to receive the correct weight balance for each share class. At this point it calculates the allocation ratios. You can view the ratios either through the View Calculated Rate panel before class allocations are posted or through the List Posted Class Rate & Activity panel after class allocations are posted.
Class | Prior Date TNA | Current Day Net Shareholder Activity | Class Level Balances to Exclude | Total Weight | RNA with Exclusion Allocation Ratio |
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A | 3,500,000.00 | 500,000.00 | (815.45) | 3,999,184.5 | 0.583944269670 |
O | 2,500,000.00 | 350,000.00 | (612.25) | 2,849,387.755 | 0.416055730330 |
6,000,000.00 | 850,000.00 | 6,848,572.30 | 1.00 |