Create a Tax Expense Based Expense

Owned by Nancy Cohn (Deactivated)
Last updated: Mar 08, 2024
2 min read

In the Create Variable Expense panel, you can associate an entity with a tax expense based expense, assign a rate to the expense, and identify the Ledger Activity type adjusted NAV expense rule to use with the expense. You can create the tax expense based expense at the fund or class level. 

To create a tax expense based expense:

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

  2. Under Fund Information, identify the entity, accounting basis, and share class for the variable expense.
    You can create a tax expense based expense at the fund or class level. 

  3. In the Primary Expense Account Name lookup, click the receivable/account in which to post the accruals.
    For example, Interest Tax Inclusion Expense, Unrealized Tax Inclusion Expense, CGT (Realized) Tax Inclusion Expense.

  4. In the Tax Expense list, click Yes to indicate the variable expense applies to a tax expense based expense.
    The panel displays only those options that apply to tax expense based expenses. The NAV Component field displays a value of Ledger Based NAV that you cannot change.

  5. In the Accrual Beginning Date box, specify the accrual begin date for the expense. 

  6. In the Adjusted NAV Expense Rule Name lookup, select the name of the adjusted NAV expense rule with a rule type of Ledger Activity.

  7. In the Tax Rate box, specify the tax rate for the expense, expressing the percentage in decimal format. 

  8. In the Fee Currency lookup, specify the local currency in which the asset is denominated.

  9. Complete the remaining options in the Create Variable Expense panel.

  10. Click Submit.
    You are ready to process the expense accruals. For more information, see Run Expense Accruals for Tax Expense Based Expenses. After processing expense accruals for the fund, you can adjust variable expense postings. For more information, see Adjust Expense Postings.

Create Variable Expense Panel Options