Understand the Assumption Fee Workflow

If you use assumption fees:

1. For each entity eligible for special waiver processing for assumption fees, set the Special Waiver Processing (tag 16642) option to Assumption Fee.
   For details, see Set Up Funds for Expense Processing.
2. Set up a special waiver hierarchy rule and select a single fund level expense to waive. 
   For details, see Manage Waiver Hierarchy Rules.
3. Set up a special waiver rule, which is a special waiver ledger account rule.
   For details, see Manage Special Waiver Ledger Rules. 
4. Set up a special waiver where you define a single fund level expense to waive.
   You identify the special waiver rule and the special waiver hierarchy rule, and you specify the total fund basis point Expense Limit/Cap in decimal format as well as the NAV Component value. For details, see Create a Special Waiver for an Assumption Fee.
5. Run expense accruals to process all fund level and class level expenses and waivers. For details, see Run Expense Accruals.
   The system allocates total fund expenses down to the share classes.
6. Run special waiver processing.
   During special waiver processing for assumption fees, the system checks if the total fund gross expenses exceed the total fund expense cap. If the amount is greater than the expense cap, then a waiver is needed. The system looks up the user defined fund level expense for the first waiver. The system post a waiver for up to 100% of the fund level expenses daily gross expense amount to the total fund. If the amount over cap is greater than the fund level expense's daily gross expense amount, then the system posts a second waiver for the remaining amount as an assumption fee. The system posts fund level waiver(s) and allocates them down to the share classes
   You can manually run this process or can use Transaction Close to start it. For a description of the manual process, see Run the Special Waiver Process. The system calculates and posts the assumption fee. If no assumption fee is needed, the system processes recoupments next.
7. You can reverse the special waiver by reopening Transaction Close or by creating a special waiver reversal. For details, see Reverse Special Waivers.