Assign an Adjusted NAV Expense Rule to a Variable Expense

Owned by Nancy Cohn (Deactivated)
Last updated: Mar 07, 2024
3 min read

After you define adjusted NAV expense rules, you can assign an adjusted NAV expense rule to a variable expense when you create or edit the variable expense. You can also remove the adjusted NAV expense rule assigned to a variable expense. 

You can assign adjusted NAV expense rules only for variable expenses defined at the total fund level. You can assign an adjusted NAV expense rule to a variable expense that has an underlying dollar-based NAV component of Prior Day Total Net Assets, Adjusted Net Assets, Average Net Assets. You must assign an adjusted NAV expense rule to a variable expense that has an underlying NAV component of Ledger Based. You cannot assign an adjusted NAV expense rule to a variable expense that has an underlying NAV component of Current Date Outstanding Share, Current Day Settled Shares, or User Defined NAV. 

Assign an Adjusted NAV Rule to a Variable Expense

In the Create Variable Expense panel or the Edit Variable Expense panel, you can assign an adjusted NAV expense rule to a variable expense for a TF share class. 

To assign an adjusted NAV expense rule to a variable expense:

  1. In Accounting Center, in the left navigation pane, click Setup > Expense > Variable Expense > Edit Variable Expense.
    You see the Edit Variable Expense panel.

  2. Select the variable expense you want to update.
    You must specify the expense's entity/accounting basis, share class, and primary expense account name. The panel displays the criteria for the selected expense.

  3. In the Effective Date box, specify the date your changes can become effective.

  4. Identify the NAV Component value for the expense.
    You can assign an adjusted NAV rule only if the Share Class value is TF, and the NAV Component value is Prior Day Total Net Assets, Adjusted Net Assets, Average Net Assets, or Ledger Based NAV.

  5. In the Adjusted NAV Expense Rule Name box, select the name of the adjusted NAV expense rule you are assigning to the variable expense.
    If the NAV Component is Ledger Based NAV, you must select an adjusted NAV expense rule with a Ledger Based rule type. Otherwise, you can select an adjusted NAV expense rule with a NAV based rule type. 

  6. Complete the remaining options to make any other updates needed for the variable expense. 

  7. Click Submit. 

Remove an Adjusted NAV Rule from a Variable Expense

In the Create Variable Expense panel or the Edit Variable Expense panel, if you do not want to use the adjusted NAV expense rule assigned to a variable expense, you can remove the adjusted NAV expense rule assignment for a variable expense. The system then processes the variable expense as if it is a variable expense that does not use an adjusted NAV expense rule. Otherwise, you can close the variable expense and re-add the variable expense without the adjusted NAV expense rule. 

To remove an adjusted NAV expense rule assignment for a variable expense:

  1. In Accounting Center, in the left navigation pane, click Setup > Expense > Variable Expense > Edit Variable Expense.
    You see the Edit Variable Expense panel.

  2. Identify the variable expense you want to update.
    You must specify the expense's entity/accounting basis, share class, and primary expense account name. The panel displays the criteria for the selected expense.

  3. In the Effective Date box, specify the date your changes become effective.

  4. In the Remove Adjusted NAV Rule list, click Yes.
    The system locks the Adjusted NAV Expense Rule Name field so it appears blank and you cannot change it. 

  5. Complete the remaining options to make any other updates needed for the variable expense. 

  6. Click Submit. 

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