Create a NAV Based Adjusted NAV Expense Rule

In the Create Adjusted NAV Expense Rule panel, you can create a new adjusted NAV expense rule with a NAV rule type or update an existing adjusted NAV expense rule with a NAV rule type with additional rule criteria.

When the system calculates the underlying NAV Component for a variable expense that uses an adjusted NAV expense rule with a NAV rule type, the starting point for the underlying NAV component specified on the variable expense is the selected NAV component. For example, the variable expense has an underlying NAV component of Prior Day Total Net Assets, Adjusted Net Assets, or Average Net Assets. The system subtracts the total amount associated with the adjusted NAV expense rule criteria from the underlying NAV amount used in the variable expense setup. 

To create a new NAV based adjusted NAV expense rule: 

1. In Accounting Center, in the left navigation pane, click Setup > Expense > Adjusted NAV Expense > Create Adjusted NAV Expense Rule.
   You see the Create Adjusted NAV Expense Rule panel.
2. In the Add or Update Adjusted NAV Expense Rule list, click Add to create a new rule and enter related rule criteria.
   Otherwise, you can select Update if you want to enter additional rule criteria for an existing rule.
3. In the Adjusted NAV Expense Rule Name field, enter the name of the rule.
4. In the Adjusted NAV Expense Rule Type list, click NAV.
   The Include/Exclude Component field displays a value of Exclude Item, which you cannot change. Exclude Item appears because the NAV rule type only subtracts values from an underlying NAV component on the variable expense. 
5. In the Expense Rule Component list, select the criteria you want to use, and then specify the value to use in the corresponding field that appears. You must define a range of ledger accounts for each row, and can optionally select Long/Short in addition to the component you select. For example, you select Processing Security Type as the expense rule component, choose EQCSCS (common stock) as the processing security type, and define a range of related ledger accounts. Options include:
   - Ledger
   - Security ID
   - Security Type
   - Processing Security Type
   - Sub-Security Type
6. In the Chart of Account Name field, specify the name of the Chart of Accounts associated with the rule.
7. If the rule criteria applies only to long or short amounts, set the Long Short list to Long or Short. 
8. In the From General Ledger Account and To General Ledger Account fields, select the beginning and ending general ledger account numbers to use for the rule. 
   NOTE: When you specify a range of ledger accounts for a component in the adjusted NAV expense rule, you cannot choose a range of accounts from both balance sheet and income statement for a single row, or rule detail. That is, the From/To range can apply to accounts on the balance sheet or it can apply to accounts on the income statement.
9. If you want to define multiple rule criteria, use the pane at the bottom of the panel, as follows: 
   - Click the grid at the bottom of the panel. 
   - Right-click and select Add Rows. 
   - Enter the number of rows you want to add in the Enter Rows Count dialog box and click OK. You need to add a row for each additional rule criteria you want to associate with the rule. 
   - Complete the options on each row you added.
10. Click Submit.

After you create an adjusted NAV expense rule, you can assign that rule to a variable expense or to a group variable expense. 

NAV Based Adjusted NAV Expense Rule Example

An example of the Create Adjusted NAV Expense Rule panel follows for a NAV based adjusted NAV expense rule.

The first row in the rule excludes all the ledger entries from the income statement for a specified security.

After you add an additional row for the rule to the grid at the bottom of the panel, you can define additional rule criteria. The second row in the rule excludes all ledger entries from the income statement for short positions of the Common Stock (EQCSCS) processing security type