CREATING BILLING SPECS

Transcription

1 CREATING BILLING SPECS To have PortfolioCenter calculate management fees for your clients, you must first create a billing spec. the billing spec contains all the settings that determine how the fees are calculated and how they appear on the billing forms. This document shows you how create the specs and what each setting means. CREATING A BILLING SPEC All specs must be assigned to a portfolio before they can be used. For the many ways to assign a spec, See Assigning Billing Specs and Forms for information about each of the various ways to assign the specs and when to use each method. 1 Click the Billing tab. 2 Click the new button to add a new spec. 3 On the General tab, enter the Spec description Billing Description Adjust Amount The name or description of the spec. Use a descriptive name to make it easy to identify in a list and to describe the types of fees. For example, billing in advance by total portfolio or billing in arrears by category. The description of the billing period. For example, Second Quarter A miscellaneous adjustment amount, such as a commission charge or a credit for an overpayment. This adjust is applied to each portfolio to which the spec is assigned. If you want an adjustment to apply to only one portfolio, create a separate billing spec for that portfolio. DocumentID: SPT Last Updated: July 20, 2016

2 Adjust Amount Description Description of the miscellaneous adjustment amount. This description can only be printed on the billing form. If you include fields for an adjustment and its description on the billing form but the adjustment field is blank or 0, neither the adjustment nor the description is printed on the billing statement. Min Fee Min Fee Description The minimum fee that will be charged to the account. If you enter an amount, it is used only if the calculated fee is less than this amount. For example, if the minimum fee is $250 and the calculated fee is $180, the minimum fee overrides the calculated fee and prints on the billing statement. Description of the minimum fee. This description can also be printed on the billing form. If a billing form has merge fields for the minimum fee and its description but the minimum fee field is blank or 0, the minimum fee and description are not printed on the billing statement. Dates (From and To) Prices (From and To) Service Tax Rate Bill In (Arrears or Advance) Allocate to bill group members Allocate based on category values (category billing only) Round total bill amount Enter the beginning and ending dates of the billing period. The most common billing period is quarterly. You must change this field for each billing period. Enter the beginning and ending price files you want to use for the billing period. The price file should correspond to the billing period dates, or fall within three business days. You must also change this field for each billing period. If applicable, enter the sales tax for services for this billing period as a percentage value. For example, for a 6% service sales tax, enter 6. Select Arrears to calculate the fee amount based on values at the end of the billing period (using the end price date. Select Advance to calculate the fee amount based on values at the beginning of the billing period (using the beginning price date) Check this box to divide the total fee amount to each group member, based on individual portfolio value. Check this box to divide the total fee amount to each category (asset class, sector, or subsector), based on category values. Check this box to round the final billing amount to the nearest dollar and store the rounded value in the billing history. Creating Billing Specs Page 2 of 5

3 Bill at single rate Check this box to apply one billing rate to the entire portfolio. Do not check this box to bill the portfolio at multiple rates. For example, one rate is assigned to the first $500, and another rate for any amount over $500, On the Prorate tab, enter the Prorate new accounts Prorate capital flows Exclude flows that adjust the bill by less than Prorate flows From and To Exclude flows under $ Proration description 1 3 Inflows or All Flows Check this field to make prorated adjustments for new portfolios based on portfolio s inception date. Check this field to make prorated adjustments for capital flows (deposits and withdrawals) in the previous period. Enter a minimum adjustment amount for prorations. For example, if you want to exclude any flows that adjust the bill by less than $20, enter 20. The dates for which you want to prorate flows. If you bill in advance, the previous billing period is usually prorated. For example, if you are billing 3/31/06 6/30/06, prorate flows for 12/31/05 3/31/06. If you bill in arrears, the current billing period is usually prorated. For example, if you are billing 3/31/06 6/30/06, prorate flows for 3/31/06 6/30/06. Smallest amount to calculate adjustments. Any capital flows less than this amount are excluded from proration. For example, enter 10 to exclude any flows less than $ Descriptions of the prorated adjustments that can be printed on the billing statement. Select Inflows to only prorate deposits and receipts of security. Select All Flows to prorate all flows: deposits, withdrawals, receipts of security and transfer of security. Creating Billing Specs Page 3 of 5

4 5 On the Rates tab, enter the Bill by total portfolios using Rates Bill by (category) Select this field to calculate fees based on the total portfolio market value. Click the Rates button to set up the rates and ranges. Enter up to 5 rates for tiered billing. In fields 1 5, enter the value range of the rate in the corresponding From and To fields. The first range is set at zero. Each successive From field is automatically set to the value of the preceding To field, plus one cent. The last field is left blank to indicate and up. See screenshot for example. Enter descriptions for each range to print on billing statements. See screenshot for example. Select this field to determine the billing rate based on the value of specific security categories. Make sure you specify the type of category you want to use. Category Rate Set area In the category section, click the New button to add a new category rate set. Click the browse button to the right of the Include field to add the categories you want to bill. Creating Billing Specs Page 4 of 5

5 Cash flow adjustments (Value at Day of Flow or Adjusted Beginning/Ending Value) Uses the portfolio group value prior to the flow. To use this method, you must have complete pricing information so the system can calculate the portfolio value prior to the flow. When a flow occurs on a Monday or the day after a holiday, PortfolioCenter uses the last appropriate price file, just as with intervals. However, the As of Date is the exact day before the flow. For example, a cash flow occurred on Monday, 3/21/06. PortfolioCenter used the price file for 3/23/06 (Friday), but the As of Date for calculating accrued interest was 3/25/06. Uses the beginning and ending value of the portfolio. The system calculated the portfolio balance by adding and subtracting flow amounts, processing deposits and withdrawals in reverse chronological order, then subtracting deposits and adding withdrawals. It used this value to determine the appropriate billing rate. 6 Click the Save button to save the changes. 7 Click the Close button to close the details, and then press <F5> to see the name of the spec on the billing tab. PortfolioCenter is a product of Schwab Performance Technologies ( SPT ). SPT is a subsidiary of The Charles Schwab Corporation separate from its affiliate Charles Schwab & Co., Inc. ( CS&Co ). CS&Co is a registered broker-dealer that provides brokerage services, while SPT licenses software and provides related technology products and services Schwab Performance Technologies ( SPT ). All rights reserved. Creating Billing Specs Page 5 of 5