Advance Fee Billing Adjustments
Advisors using Advance billing have the option to calculate retroactive adjustments to the fees already charged for the previous period. These adjustments can be triggered by inflows/outflows that exceed a threshold specified in the billing configuration, as well as by the opening and/or closing of accounts. The adjustment process is run on the day after the end of the period.
For each account that meets a trigger criteria, the following process is used:
- The period is recalculated using the actual data from the period. This includes prorating accounts that were opened or closed during the period and using the actual market value data that reflects the effects of any inflows/outflows or market movement. As with the normal fee collection calculation, adjustment calculations can be based on the Period End Balance (ending market value), or on the Average Daily Balance.
- The new fees generated are compared to the fees originally produced using the projected values at the beginning of the period. An adjustment is created for the difference between the projected fee and the adjusted fee.
- The adjustment is added to the fee collection details and amounts of the next period.
To activate this feature and set your adjustment events, see Billing Settings for full details.
Related Articles
Billing Settings
The following broad options are available in Billing Settings. Alternate Billing Groups (also known as Billing Subtenants) may be established to have different configurations of these rules for different scenarios. See Creating and Configuring ...
Billing Reconciliation Report
The Billing Reconciliation Report allows you to compare the calculated fees from the Billing Engine with the actual fees that were deducted from the account. To view the report, navigate to Run Business > Revenue > Reports and select a billing period ...
Generating Fee-Billing Invoices
Firms have the ability to quickly generate, preview, and share invoices with clients to provide detailed information regarding how their fees were calculated. Visibility for individual invoices may be controlled per-client. Generating Invoices for ...
Creating Fee Schedules and Overrides
To create a new Fee Schedule: Navigate to Run Business > Billing. 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 ...
Creating an Advisor Fee Split
You can assign an Advisor Code that splits any way you like between multiple Advisors. To create a Fee Split: Navigate to Run Business > Billing. Click Create Advisor Fee Split from the top controls. Select a Fee Split Code from the drop-down. This ...