Manage Class Allocation Adjustment Rules

You can use class allocation adjustment rules to adjust the total net assets per share class used in certain class allocation methods.

About Adjusting Class Allocations

You can specify a class Allocation Adjustment Rule for a class Allocation Rule to exclude user-defined ledger account balances from the total net assets used in the class allocation percentage calculations. The system modifies the class allocation percentage calculation to reduce the total net assets per share class by the ledger balances for the ledger accounts defined in the class Allocation Adjustment rule. It subtracts asset accounts from net assets and it adds liability accounts back to net assets.

You can use class Allocation Adjustment Rules only with an Allocation Rule that specifies a class Allocation Method that uses total net assets such as Relative Net Assets, Prior Night Net Asset, Relative Net Asset At Market Value, and Current Day Adjusted Net Asset.

Create or Update a Class Allocation Adjustment Rule

You can create or update a class allocation adjustment rule.

To create or update an allocation adjustment rule:

1. In Accounting Center, in the left navigation pane, click Setup > Fund Accounting > Allocation Rules > Create/Update Allocation Adjustment Rule.
   You see the Create/Update Allocation Adjustment Rule panel.

2. In the Add or Update Class Allocation Adjustment Rule Name Rule field, specify whether you are adding or updating a class allocation adjustment rule. 
   Options include:
   –  Add. Default. Used to create a new class allocation adjustment rule and enter related rule criteria.
   –  Update. Used to enter additional rule criteria for an existing class allocation adjustment rule.

3. In the Class Allocation Adjustment Rule Name field, specify the name of the class allocation adjustment rule you are adding or updating.

4. In the Chart of Account Name field, specify the name of the Chart of Accounts associated with the class allocation adjustment rule.

5. In the From General Ledger Account field, specify a beginning general ledger account for the class allocation adjustment rule. 
   The system applies the rule to a range of accounts based on the From General Ledger Account and To General Ledger Account fields.

6. In the To General Ledger Account field, specify an ending general ledger account for the class allocation adjustment rule. 
   The system applies the rule to a range of accounts based on the From General Ledger Account and To General Ledger Account fields.

7. You can add or update one or more class allocation adjustment rules using the pane in the lower portion of the panel, as follows:
   –  Right-click the lower pane and select Add Rows.
   –  Enter the number of rows you want to add on the Enter Rows Count dialog box and click OK. You need to add a row for each additional rule you want to add.

8. Click Submit.