Creating Fee Schedules and Overrides

Creating Fee Schedules and Overrides

Fee schedules are the basis for all billing in AdvisorEngine. A Fee Schedule tells the AE billing system how to bill each account the end of a billing period is reached. On top of the default schedule, overrides, discounts, and exclusions can also be applied.

Start Date and End Date

Fee Schedules or overrides are in effect from the Start Date to the End Date, inclusive.

For example, to create an account override for a single billing quarter, you would set the start date to the first day of the quarter (ex 4/1/2030), and the end date to the last day of the quarter (6/30/2030).

Creating a New Fee Schedule or Override

  1. Navigate to Run Business > Billing.
  2. Decide whether to start from scratch or create based on an existing Fee Schedule.
    • To start from scratch, click Create Fee Schedule from the top list of commands.
    • To duplicate and edit an existing Fee Schedule, locate it in the list and click the duplicate control.
  3. Select the Schedule Type:
    • Default Fee Schedule for this Billing Group: The selected schedule will apply to all accounts in the billing group unless there is an Advisor or Account override.
    • Advisor Default Fee Schedule: The defined schedule will apply to all accounts for the selected Advisor(s) unless there is an account override.
    • Account Override Fee Schedule: The defined schedule will apply to all selected accounts, overriding any Advisor or Default schedules.
    Note: AdvisorEngine recommends having a default fee schedule for every billing group. Though it is possible to cover all your accounts with Advisor Fee Schedules, when new advisors are added to the firm, they must then be added to an existing schedule or have a new schedule created. If this step is accidentally missed and you do not have a default schedule, this will create problems in billing.
  4. Select the Calculation Method: Flat, Cliff Tier, or Blended.
    • Flat: Flat dollar amount.
    • Cliff Tier: Entire account will be billed at the BPS set for the tier the account falls in.
    • Blended: Each tier will be billed at the BPS set for that tier and any remainder at the next tier and so on.
    Note: if an account is part of a Billing Household, the total of all the accounts in the household are used to determine which tiers are billed.
  5. Select the Fee Type. The available options will depend on which Fee Types are selected in your general Billing Settings.
  6. Assign a Name to the schedule.
  7. Set the Fee $ Amount (Flat Schedules) /Minimum Fee (Tier Schedules).
  8. Set the Start Date and, if needed, End Date.
    9. Note: To have a fee schedule or override change partway through a billing cycle, do not edit an existing schedule. Set the current schedule or override to have the appropriate End Date and create the new schedule/override to begin the following day.
  9. Cliff/Blended Tier Fees Only: Create your billing tiers.
    • Use the + New Tier control to add as many tiers as needed.
    • Set the Maximum range and Fee BPS of each tier.
    • The Minimum range of each tier is set automatically from the previous tier’s Maximum.
    • The final tier Maximum will always be and up.
  10. If creating an Advisor Default Fee Schedule: Search for and select the Advisor(s) to whom the fee schedule applies.
  11. If creating an Account Override Fee Schedule: Search for and select the Account(s) which the fee schedule applies to.
  12. Click Save at the bottom to save and enable the new Fee Schedule.

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