Create a Ledger Activity Adjusted NAV Expense Rule

In the Create Adjusted NAV Expense Rule panel, you can create a new ledger activity type adjusted NAV expense rule or update an existing ledger activity adjusted NAV expense rule with additional rule criteria. You can use ledger activity adjusted NAV expense rules when you create variable expenses used as tax expense based expenses.

The ledger activity type adjusted NAV expense rule defines the assets used to calculate a tax expense based expense by explicitly defining which ledger balances to use in the tax expense based expense calculation. When you define a ledger activity type adjusted NAV expense rule, the rule can consist of one or more ledger account ranges, and it can comprise ledger accounts in combination with long/short criteria. 

To create a new ledger activity 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 Activity.
   The Expense Rule Component field displays a value of Ledger. The Include/Exclude Component field displays a value of Include Item. You cannot change those values. 

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

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

7. 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. 
   The From/To range can apply to accounts on the income statement.

8. 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.

9. Click Submit.

After you create an adjusted NAV expense rule, you create a variable expense for a tax expense based expense where you assign that rule to an entity.

Ledger Activity Adjusted NAV Expense Rule Example

An example of the Create Adjusted NAV Expense Rule panel follows that shows a ledger activity rule. The example includes three rows for ledger accounts for the rule. 

In the following figure, you add the initial rule criteria for the adjusted NAV expense rule. Note that when you set the Adjusted NAV Expense Rule Type to Ledger Activity, the Expense Rule Component shows a value of Ledger, and the Include/Exclude Component shows a value of Include Item. You can include a range of ledger accounts in each row, along with Long/Short criteria. In this example, you select a single ledger account per row. You add several additional rows to the grid at the bottom of the panel to include additional criteria for the rule, 

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