Create a Special Waiver for an Assumption Fee

In the Create Special Waiver panel, you can add a special waiver for an assumption fee. With an assumption fee, you define a single fund level expense to waive. When you set up a special waiver for an assumption fee, you identify the appropriate special waiver ledger rule and special waiver hierarchy rule to use, and you specify the total fund basis point Expense Limit/Cap in decimal format as well as other values used for the calculations. For general setup information and an example, see Understand Assumption Fees. 

To create a special waiver for an assumption fee:

1. In Accounting Center, in the left navigation pane, click Setup > Expense > Special Waivers > Create Special Waiver.
   You see the Create Special Waiver panel.

2. In the Entity ID, Entity Name, and Accounting Basis fields, specify the entity identifier, entity name, and accounting basis for the special waiver. 
   The system checks the type of special waiver processing the entity can use. Because you set up the entity as eligible for assumption fees, the Share Class field displays a value of TF, indicating the special waiver applies to the Total Fund level. 

3. In the Special Waiver Rule box, select the special waiver ledger account rule to use for the special waiver. 

4. In the Special Calc Type box, click Daily to apply the special waiver's limit/cap to daily total net assets or click Cumulative to apply the special waiver's limit/cap to cumulative net assets. 
   The option you select determines several additional required options that become available.

5. Complete the options based on your choice of the Daily or Cumulative method.
   For example, if you select the Daily method, you must select a NAV Component value. Or if you select Cumulative, you must select a TNA Use Prior Period value. 

6. In the Expense Limit/Cap box, enter the percentage of the NAV component (if Daily calculation type) or the percentage of the total net assets component (if Cumulative calculation type) which the system compares to the expense activity of the accounts specified in the special waiver rule. 
   Use a decimal format for this value.

7. In the Special Waiver Hierarchy Rule box, select the special waiver hierarchy rule to use for the special waiver.
   The lookup allows you to select a special waiver hierarchy rule that has a type of Assumption Fee.

8. Specify the Start Date and End Date values for the special waiver. 
   You must specify a start date.

9. Complete the remaining options in the Create Special Waiver panel. 
   You can specify recoupment criteria. 

10. Click Submit.