Understand Month End Processing for Mutual Fund Accounting

Owned by Nancy Cohn (Deactivated)
Last updated: May 30, 2024
2 min read

 

Month end processing allows a Core Accounting portfolio to report as-of activity in a separate month-end period while maintaining its regular ledger period process. Month end processing also can allows a Mutual Fund Accounting fund to report as-of activity in a separate month-end period while maintaining its regular ledger period process. In addition, mutual funds can use month end processing to calculate a month end NAV.

Use Month End Processing with Mutual Fund Accounting

The month end process for Mutual Fund Accounting includes specialized tasks needed for the calculation of a month end NAV. These tasks supplement the setup and processing activities described in . These tasks apply to both entities and master funds, and allow you to report on month end data stored in the Eagle data warehouse.

Most Mutual Fund Accounting clients that use month end processing use Control Center to automatically schedule and perform the tasks that comprise month end processing. However, you can also perform many of those tasks manually by submitting the corresponding panels.

This section describes those panels specific to Mutual Fund Accounting. You can use these panels to perform processing manually if you are learning about month end processing or for troubleshooting purposes. A description of these panels follows in .

Understand the Control Center Month End Module

Control Center provides a central location for you to view the daily or month end accounting status of funds (entities) or groups of funds. It is an exception based processing tool which tests the accuracy of accounting activity on a real time basis. You can group funds/entities in composite structures (multiple layers), allowing managers to view the status of an entire complex in a simple rolled up view.

Control Center’s Month End module was designed as a central location for you to monitor as-of monthly activity for Mutual Fund Accounting and see corresponding NAV impacts. As-of activity is transactions with an accounting date in the current monthly period, with an effective date or Month End Accounting date in the prior monthly period. Clients that produce adjusted monthly, quarterly, semi-annual, or annual books containing as-of transactions can use the Control Center Month End module to prove out the change in net assets (and NAV per share) from the last business day of the month to the as-of adjusted monthly net assets and NAV per share.

Control Center’s Month End module offers limited transaction related edit tests because the as-of transactions are tested in the ordinary daily process and reviewed in the daily Control Center module. Month End Control Center shows the month end (ME) pricing status for all the holdings on the last business day of the month, plus any adjustments for as-of trade activity. It also has a NAV Reconciliation proof, which is very similar to the daily report. The ME NAV Reconciliation proof pulls in the Net Assets and NAV per share from the last business day of the month, and all the as-of activity to explain the change in the monthly net assets and NAV per share. The proof also shows the corresponding NAV impacts for all the as-of activity.

 

 

 

 

 

 

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