Understand the Waterfall Waiver Workflow

If you use waterfall waivers, this high level workflow occurs:

1. For each entity eligible for special waiver processing for waterfall waivers, set the Special Waiver Processing (tag 16642) option to Waterfall Waiver Daily or Waterfall Waiver FYTD.
   For details, see Set Up Funds for Expense Processing.

2. Set up a special waiver hierarchy rule and select the fund level and class level expenses 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 identify the special waiver rule and the special waiver hierarchy rule, and you specify the basis point Expense Limit/Cap in decimal format as well as the NAV Component value for each share class.
   For details, see Create a Special Waiver for a Waterfall Waiver.

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.
   You can manually start 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 waterfall waiver. If no waterfall waiver 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.