In the Create Fixed Expense panel, you can create one or more fixed expenses. The following are the options in the Create Fixed Expense panel.
Option | Tag | Description |
|---|---|---|
Fund Information | ||
Entity ID | 1163 | Specifies the entity identifier. |
Entity Name | 1164 | Specifies the entity name. |
Share Class | 34 | Specifies a valid share class. A share class is a designation, usually alphabetic, given to a fund's shares. For example, if you designate the share class as TF, the system would accrue the expense against the entire or total fund. You may designate a specific share class if a total fund expense is not required. |
Accounting Basis | 21 | Specifies the accounting basis. This option allows you to set up an expense on a secondary accounting basis or designate it to a specific class within a fund. |
Expense Information | ||
Replication Switch | 4971 | Allows you to replicate expenses on an expense by expense basis and determines the receivable/payable accounts in which to post the accruals and settlements. This field is hidden. Options include:
|
Expense Account Name | 3252 | Specifies the receivable/account in which to post the accruals. |
Secondary Basis Expense Account Name | 4997 | Specifies the replication expense account if it is different than the primary account. This field only appears when you select Replicate Expense Accruals and Settlements Diff Rec/Pay and Replicate Expense Settlements Diff Rec/Pay. |
Accrual Type Indicator | 3200 | Indicates whether expenses are fixed or spread over a period. Options include:
|
Accrual Beginning Date | 220 | Specifies the accrual begin date. |
Accrual Ending Date | 221 | Specifies the accrual end date. An end date is only required when the accrual type is spread over a period. |
Fee Amount | 3201 | Specifies the amount you want to accrue. For example, suppose you set the Accrual Type Indicator field to Fixed Daily Accrual and you entered an amount of $50.00. An expense accrual of $50.00 per day would begin as of the start date of the expense. If you set the Accrual Type Indicator field to Spread Over Period, the amount would be spread out and accrued between the start and end date of the expense. The amount can be a positive or negative integer. The system calculates the amount to post on each date using the value in the Accrual Frequency field. |
Accrual Frequency | 518 | Specifies the frequency of the accrual. Options include:
|
Fee Currency | 85 | Specifies the local currency in which the asset is denominated. This field defaults to the base currency of the entity, but allows you to select a local currency. |
Calendar/Business Days | 824 | Indicates whether business or calendar days are used. This field is populated by information stored at the entity level. |
About the Replicate Expense Settlements Only Option
The expense election in the Replication Switch field, Replicate Expense Settlements Only, allows you to set up one expense using two different accrual methods. See the following table.
In this example, the Replicate Expense Settlements Only option would trigger a one day expense accrual on the USTAX basis when the cash settlement on the GAAP basis was processed. You would accrue $500.00 over the week on the GAAP side and you would relieve the payable (expense accrual) on the GAAP side with a cash payment of $500.00. The event would then be replicated in the system. A $500.00 cash payment would be posted to the USTAX side. And a one day expense accrual equal to the pay date of the cash would also be posted.
About the Replicate Expense Settlements Diff Rec/Pay Option
The expense election in the Replication Switch field, Replicate Expense Settlements Diff Rec/Pay, also allows you to set up one expense using two different accrual methods. However, this option also allows you to post the cash and accrual to a different receivable/payable account using the Secondary Basis Expense Account Name field, as shown in the following example.
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