Create NII Expense Reimbursement Rules

In the Create/Update NII Expense Reimbursement Rule panel, you can add a new net investment income (NII) expense reimbursement tier rule or you can update an existing rule with a new hierarchy level. The NII expense reimbursement tier rule allows a fund to waive expenses to separate waiver accounts if expenses exceed income in a fund that elects to fully distribute net income.

To add or update an NII expense reimbursement tier rule:

1. In Accounting Center, in the left navigation pane, click Setup > Fund Accounting > Net Investment Income Distributions > Create/Update NII Expense Reimbursement Rule.
   You see the Create/Update NII Expense Reimbursement Rule panel.

2. In the Add or Update Hierarchy Rule list, select Add. 
   Otherwise, click Update to add a new hierarchy level to an existing NII expense reimbursement tier rule. 

3. In the Accounting Basis field, select the accounting basis for the net investment income (NII) expense reimbursement tier rule.

4. In the NII Tier Rule field, specify the name of the net investment income (NII) expense reimbursement tier rule.

5. In the Reimbursed Expense Account Name field, select the expense account you want reimbursed if the net income falls below a set minimum yield value.  
   Options include:
   –  Advisory/Management Fees
   –  Administration Fees
   –  Registrar and Transfer Agent Fees
   –  Sub-custodian Fees
   –  Distribution Fees
   When you select an account name, the Reimbursed Expense Ledger Account field displays the corresponding account number.

6. In the Waiver Expense Account Name field, select the waiver account where you want to book the reimbursement amount. 
   Options include:
   –  Advisory/Management Fee Waiver
   –  Administration Fee Waiver
   –  Registrar and Transfer Agent Fee Waiver
   –  Shareholder Service Fee Waiver
   –  Distribution Fee/12B1 Waiver
   –  Transfer Agent - Out of Pocket Waiver
   –  Other Transfer Agent Waiver
   When you select an account name, the Expense Waiver Ledger Account field and the Expense Waiver Payable Ledger Account field display the corresponding account numbers.

7. In the Tier Level field, specify the number of the tier level within the NII expense reimbursement tier rule.
   For example, 1 identifies the first tier for which the system posts the reimbursement balance.

8. If you want to define additional tiers for the tier rule:
   –  Right-click the grid at the bottom of the panel, and then select Add Rows.
   –  Enter the number of rows you want to add, and click OK.
   –  Complete the fields on each row you added.

9. Click Submit.

Create/Update NII Expense Reimbursement Rule Panel Options

The following are the options in the Create/Update NII Expense Reimbursement Rule panel.