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Before you create an income based expense (or an asset management fee), you must set up income based expense tier rules. Income based expense tier rules define the performance rate used to calculate the expense. A tier rule has a tier ID, and is comprised of any number of levels. Each level is called a tier. For each tier level, you can define a percent rate, a lower bound, and an upper bound. Income based expense rule tiers additionally allow you to specify whether the tier applies to daily or monthly income. 

After you define the tier ID, you can add one or more tier levels to create a tier rule. The tiers are generic in nature, that is, you do not create tier rules and tiers for a specific entity. Multiple entities or multiple expense accounts within an entity can use the same expense tier.

You must set up income based expense tier rules for use with both income based expenses and for use with asset management fees.

Create an Income Based Expense Tier Rule

In the Create Income Based Tier Rule panel, you can define the tier rule used by income based expenses and asset management fees. This rule defines the performance rate used to calculate the expense. After you define the tier ID, you can add tier levels to create a tier rule.

To create an income based expense tier rule:

  1. In Accounting Center, in the left navigation pane, click Setup > Expense > Income Based Expense > Create Income Based Tier Rule.
    You see the Create Income Based Tier Rule panel.
  2. In the Tier ID box, enter the name of the tier id rule.
    You can use any naming convention up to 100 characters.
  3. In the Tier Type list, select the type of income based expense tier rule you are creating. 
    Options include:
    - Daily Income Based Expense Tier. Applies tiered rates to the daily income amount.
    - Monthly Income Based Expense Tier. Allows the system to use a cumulative month to date income balance in calculating expense accruals. You can use a tiered rule based on a user defined income account range for the expense accrual. 
  4. In the pane at the bottom of the panel, enter the information for the tier level. You can specify the following values for each level: 
    - Percent Rate. Specifies the percentage of total net assets as a decimal.
    - Lower Bound. Specifies the dollar amount for the lower total net assets bound.
    - Upper Bound. Specifies the dollar amount for the upper total net assets bound. If you specify a value, it must exceed the corresponding lower bound. You can leave this value blank if the tier level applies to total net assets above the dollar amount specified in the lower bound.
  5. If you want to define multiple tier levels, use the pane at the bottom of the panel, as follows:
    - Click the lower pane.
    - 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 level you want to associate with the tier rule.
    - Complete the fields on each row you added.
  6. Click Submit. 

Edit an Income Based Expense Tier Rule

In the Edit Income Based Tier Rule panel, you can change an income based expense tier rule.

To edit an income based expense tier rule:

  1. In Accounting Center, in the left navigation pane, click Setup > Expense > Income Based Expense > Edit Income Based Tier Rule.
    You see the Edit Income Based Tier Rule panel.
  2. In the Tier Type list, select the type of income based expense tier rule you are changing. 
    Options include:
    - Daily Income Based Expense Tier. Applies tiered rates to the daily income amount.
    - Monthly Income Based Expense Tier. Allows the system to use a cumulative month to date income balance in calculating expense accruals. You can use a tiered rule based on a user defined income account range for the expense accrual. 
  3. Select a value in the Tier ID field to display the tier of the tier rule you want to edit.
    You can click the Tier ID lookup to view the Tier ID, tier number, lower bound, and upper bound values for each tier for the selected tier type. Be aware that the first tier of an expense tier is not numbered and the second tier is denoted with the number 1. Therefore, the last tier in a sequence of four is the tier name followed by the number 3, 
  4. Change the Percent Rate, Lower Bound, and/or Upper Bound value for the selected tier rule level.
  5. Click Submit.

List Income Based Expense Tier Rules

In the List Income Based Tier Rule panel, you can view a list of income based expense tier rules.

To view a list of income based expense tier rules:

  1. In Accounting Center, in the left navigation pane, click Setup > Expense > Income Based Expense > List Income Based Tier Rule.
    You see the List Income Based Tier Rule panel.
  2. In the Tier Type list, select the type of income based expense tier rule you want to view. 
    Options include:
    - Daily Income Based Expense Tier. Applies tiered rates to the daily income amount.
    - Monthly Income Based Expense Tier. Allows the system to use a cumulative month to date income balance in calculating expense accruals. You can use a tiered rule based on a user defined income account range for the expense accrual. 
  3. In the Tier ID field, select the name of the income based tier ID rule you want to view.
    Otherwise, leave the field blank to view all income based expense tier rules.
  4. Click Submit.
    You see the tier levels of each income based tier rule that met your criteria in the Show All tab. 

List Income Based Expense Tier Rule History

In the List Income Based Tier Rule History panel, you can view historical information for an income based expense tier rule. You can use this panel to view income based expense tiers that existed and/or were in effect at a certain time. 

To list income based expense tier rule history:

  1. In Accounting Center, in the left navigation pane, click Setup > Expense > Income Based Expense > List Income Based Tier Rule History.
    You see the List Income Based Tier Rule History panel.
  2. In the Tier Type list, select the type of income based expense tier rule you want to view. 
    Options include:
    - Daily Income Based Expense Tier. 
    - Monthly Income Based Expense Tier. 
  3. In the Tier ID field, select the name of the income based tier ID rule you want to view.
  4. In the Report Start Date and Report End Date fields, enter the beginning and ending dates for the history you want to view. 
  5. Under Result Options, click Grid or Advanced Report for the report view you want.
  6. Click Submit.
    If you selected Grid, you see the history for the income based expense tier rules that met your criteria in the Show All tab. You can view the trade date and the update date for each income based expense tier row that met your criteria.

Delete an Income Based Expense Tier Rule

In the Delete Income Based Tier Rule panel, you can delete an income based expense tier rule.

To delete an income based expense tier rule:

  1. In Accounting Center, in the left navigation pane, click Setup > Expense > Income Based Expense > Delete Income Based Tier Rule.
    You see the Delete Income Based Tier Rule panel.
  2. In the Tier Type list, select the type of income based expense tier rule you want to delete. 
    Options include:
    - Daily Income Based Expense Tier. 
    - Monthly Income Based Expense Tier. 
  3. In the Tier ID field, select the name of the income based tier ID rule you want to delete.
  4. Click Submit.
    The system deletes the income based expense tier rule.

Income Based Expense Tier Rule Examples

An example of an income based tier rule used for an income based expense follows.


Create Income Based Tier Rule panel

The following income based tier rule example applies to an asset management fee. 

Create Income Based Tier Rule panel - Asset Management Fee example

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