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In the Create Master Fund panel and the Edit Master Fund/Sector panel, there are several expense related fields that impact expense processing. These fields determine whether you can do the following:

  • Book budgeted and variable expense payables against an offset account for expense payments.

  • Replicate expense accruals and cash settlements across primary and secondary accounting bases.

  • Process special types of waivers for the master fund.

To set up a fund for expense processing:

  1. Do one of the following:
    - In Portfolio Data Center, in the left navigation pane, click Portfolio Desk > Accounting Portfolio Setup > Mutual Funds > Create Master Fund.
    - In Accounting Center, in the left navigation pane, click Setup > Portfolio Setup > Mutual Funds > Create Master Fund.
    You see the Create Master Fund panel. If you previously created the fund, you can select the Edit Master Fund/Sector panel to change the options.

  2. Complete the Expense Fields group of options on the panel.

  3. Complete the remaining options in the panel

...

  1. as needed.

  2. Click Submit.

Create Master Fund Setup Panel - Expense Fields 

The following are the expense related options in the Create Master Fund panel.

Option

Tag

Description

Expense Fields



Expense Payment Offset Account

12037

Specifies the offset account to use for expense payments for budgeted and variable expenses. When you process expense settlements, the system reclassifies the expense payable to the specified account. You must specify a general ledger account to carry accruals forward for budgeted expenses and compare payments to preset tolerances. If you leave this field blank, the system offsets the budgeted and variable expense payments to cash.

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Expense Election

4952

Determines whether to replicate expense accruals and cash settlements across accounting bases. Options include:

  • Replicate Expense Accruals and Expense Settlements. Allows the replication of accruals and cash settlements. The Replication Switch field (tag 4971), which is displayed on the panels used to set up expenses and expense reimbursements, allows you to replicate the accruals, cash settlements, and reimbursements on an expense by expense basis, and determines the receivable/payable accounts in which to post the accruals and settlements. Additionally, the Replication Switch dropdown, which is displayed on the Post Manual Entry Local and Base window in the Ledger Center, allows you to replicate ledger postings on all accounting bases.

  • Replicate Expense Settlements Only. Allows the replication of fund expenses only. The Replication Switch field (tag 4971), which is displayed on the panels used to set up expenses and expense reimbursements, allows you to replicate the accruals, cash settlements, and reimbursements on an expense by expense basis, and determines the receivable/payable accounts in which to post the accruals and settlements. Additionally, the Replication Switch dropdown, which is displayed on the Post Manual Entry Local and Base window in the Ledger Center, allows you to replicate ledger postings on all accounting bases.

  • Do Not Replicate. Disables replication.

Special Waiver Processing

16642

Identifies the special waiver processing method that the master fund uses. Options include: 

  • None.

 Default

  •  Default. The entity cannot process special waivers.

  • Assumption Fee.

 The

  •  The entity can process assumption fees where you select one expense to waive and a second waiver processes the remaining expense over cap as an assumption fee. This is not an option for master feeder funds.

  • Waterfall Waiver Daily. The entity can process waterfall waivers where you define fund and class level expense hierarchies to waive using daily gross expenses. Class level expenses are waived first and then fund level expenses are waived, as needed. This is not an option for master feeder funds.

  • Waterfall Waiver FYTD.

 The

  •  The entity can process waterfall waivers where you define fund and class level expense hierarchies to waive using fiscal year to date balances. Class level expenses are waived first and then fund level expenses are waived, as needed. This is not an option for master feeder and feeder funds.