Assign an Adjusted NAV Expense Rule to a Variable Group 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 an entity level expense rule in a variable group expense when you create the variable group expense. You can also assign the adjusted NAV expense rule when you add or change entities in a variable group expense. 

You can assign adjusted NAV expense rules only for variable group expenses defined at the total fund level. You can assign an adjusted NAV expense rule to a variable group 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 group expense that has an underlying NAV component of Ledger Based. You cannot assign an adjusted NAV expense rule to a variable group expense that has an underlying NAV component of Current Date Outstanding Share, Current Day Settled Shares, or User Defined NAV. 

Assign an Adjusted NAV Expense Rule When You Create a Variable Group Expense

In the Create Group Expense panel, when you create a variable group expense, you can assign an adjusted NAV expense rule to a group 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 > Group Expense > Create Group Expense.
    In the Create Group Expense wizard, you see the Step 1: Setup Group Expense Details panel. This step allows you to add a new group expense or allows you to add one or more group level expense rules for an existing group expense.

  2. Complete the options in the Step 1: Setup Group Expense Details section.
    Ensure you set the Group Expense Type to Variable Group Expense if you plan to assign an adjusted NAV expense rule. 

  3. Click Next.
    The system saves the group level expense information. You see Step 2: Add Funds to Group Expense in the Create Group Expense panel.

  4. Complete the options in the Step 2: Add Funds to Group Expense section.
    This step allows you to add one or more entities to the group expense and define entity level expense rules. After you select an entity, you can specify the expense end date and NAV component information. For variable group expenses, you can additionally identify a waiver account.

  5. Identify the NAV Component value for the expense.
    You can assign an adjusted NAV expense 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.

  6. In the Adjusted NAV Expense Rule Name field, select the adjusted NAV expense rule for the entity level expense rule. 
    If the NAV Component value is Ledger Based NAV, you must select an adjusted NAV expense rule with a Ledger Based rule type. 

  7. Click Next.
    The system saves the entity level expense information. You see the Wizard Completed panel.

  8. Click Close Workflow.
    You are ready to process the expense accruals for the entities that belong to the group expense by running the accrual process. For more information, see Run Expense Accruals. 

Assign an Adjusted NAV Expense Rule When You Add or Change Entities in a Variable Group Expense

In the Add Entity to Group Expense panel, when you add an entity/accounting basis to an existing variable group expense or change expense information for an entity that is part of a variable group expense, you can assign an adjusted NAV expense rule.

To add or change entities in a group expense:

  1. In Accounting Center, in the left navigation pane, click Setup > Expense > Group Expense > Add Entity to Group Expense.
    You see the Add Entity to Group Expense panel.

  2. Click the Select Type of Group Expense Change field, and indicate whether you are adding an entity to a group expense or changing expense information for an entity in a group expense.
    Options include:
    –  Add New Entity to a Group Expense. Allows you to associate an entity/accounting basis with a specified expense group and enter entity level expense information for that entity/basis. 
    –  Change Existing Entity in a Group Expense. Allows you to update entity level expense information for a specified entity associated with one or more expense groups.

  3. Follow the general procedure described in Add or Change Entities in a Group Expense.
    In the remaining options on the panel, add or update the entity level variable group expense for the selected entity.

  4. Ensure you set the Expense Type to Variable Group Expense if you plan to assign an adjusted NAV expense rule. 

  5. In the Adjusted NAV Expense Rule Name field, you can select the adjusted NAV expense rule for the entity level expense rule. 
    You can assign a 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. If it is Ledger Based NAV, you must select an adjusted NAV expense rule with a Ledger Based rule type. 

  6. Click Submit.