Create a Ledger Based Adjusted NAV Expense Rule

In the Create Adjusted NAV Expense Rule panel, you can create a new ledger based adjusted NAV expense rule or update an existing ledger based adjusted NAV expense rule with additional rule criteria.

When the system calculates the underlying NAV Component for a variable expense that uses the Ledger Based method, the starting point is zero. For rule components included in the adjusted NAV expense rule, it adds the net amount to the ledger based NAV. For rule components excluded in the adjusted NAV expense rule, it subtracts the net amount from the ledger based NAV. When you define a ledger based rule, the rule can consist of one or more ledger accounts targeted for an expense, can consist of a component such as a security, security type, processing security type, sub security type, or it can comprise multiple criteria that you include and/or exclude.

To create a new ledger based adjusted NAV expense rule: 

1. In Accounting Center, in the left navigation pane, click Setup > Expense > Adjusted NAV Expense > Create Adjusted NAV Expense Rule.
   You see the Create Adjusted NAV Expense Rule panel.

2. In the Add or Update Adjusted NAV Expense Rule list, click Add to create a new rule and enter related rule criteria.
   Otherwise, you can select Update if you want to enter additional rule criteria for an existing rule.

3. In the Adjusted NAV Expense Rule Name field, enter the name of the rule.

4. In the Adjusted NAV Expense Rule Type list, click Ledger Based.

5. In the Expense Rule Component list, select the criteria you want to use, and then specify the value to use in the corresponding field that appears. For example, you select Processing Security Type as the expense rule component and then choose EQCSCS (common stock) as the processing security type. Options include:
   - Ledger
   - Security ID
   - Security Type
   - Processing Security Type
   - Sub-Security Type

6. In the Chart of Account Name field, specify the name of the Chart of Accounts associated with the rule.

7. In the Include/Exclude Component list, click Include Item or Exclude Item. 

8. If the rule criteria applies only to long or short amounts, set the Long Short list to Long or Short. 

9. In the From General Ledger Account and To General Ledger Account fields, select the beginning and ending general ledger account numbers to use for the rule. 
   NOTE: When you specify a range of ledger accounts for a component in the adjusted NAV expense rule, you cannot choose a range of accounts from both balance sheet and income statement for a single row. That is, the From/To range can apply to accounts on the balance sheet or it can apply to accounts on the income statement.

10. If you want to define multiple rule criteria, use the pane at the bottom of the panel, as follows: 
    - Click the grid at the bottom of the panel. 
    - Right-click and select Add Rows. 
    - Enter the number of rows you want to add in the Enter Rows Count dialog box and click OK. You need to add a row for each additional rule criteria you want to associate with the rule. 
    - Complete the options on each row you added.

11. Click Submit.

After you create an adjusted NAV expense rule, you can assign that rule to a variable expense or to a group variable expense. 

Ledger Based Adjusted NAV Expense Rule Example

An example of the Create Adjusted NAV Expense Rule panel follows that shows a ledger based rule. The example includes all the ledger accounts from the capital and income ledger accounts on the income statement and excludes ledger accounts from the expense accounts on the income statement. 

In the following figure, you add the initial rule criteria for the adjusted NAV expense rule. Note that you set the Adjusted NAV Expense Rule Type to Ledger Based and the Expense Rule Component to Ledger. You are including a range of ledger accounts to include all the ledger accounts from the capital and income ledger accounts on the income statement 

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After you add an additional row to the grid at the bottom of the panel, you define additional criteria where you exclude a range of accounts. This excludes ledger accounts from the expense accounts on the income statement. 

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