Beneficiary funds are set up as a single scheme with a large number of benefit membership groups that represent a combination of the trust product, e.g. income, balanced or growth, and the previous fund, i.e. the fund from which money was transferred. This has been done as the different types of fees are applied to the different trust products and are based on the previous fund or previous administrator.
To be able to report on the fees for each of the various trust products, the fees for each product are created with a different expense type.
Refer to
Products
Beneficiary Fund
Initial Setup
The JU3BH_BILL expense billing batch job calculates fees and premiums and produces a report of the fees and premiums payable. Once authorization of the calculated fees and premiums has taken place, the necessary accounting transactions will be generated.
The process is as follows:
- The JU3BH_BILL batch selection for expenses is captured on the batch schedule (under the batch group of EXPENSES) with a selection period
- The JU3BH_BILL expense billing batch job calculates the premiums based on the criteria entered as well as the scheme rules effective for the period, and stores the data. This data can be viewed under income administration.
When the JU3BH_BILL expense billing batch job runs, the expense rules for which the regularity on the expense type is REGULAR, are read.
If the formula type is PERCENTAGE, and the FORMULA APPLIED TO for the expense type is MARKET VALUE, the monetary and unit balances on the member's INVSTEMUNIT accounts per portfolio and income type will be retrieved as at the effective date of the expense billing run.
Unit Price
If the earning allocation code for the portfolio is UNITISED, the authorised unit price for the portfolios with an effective date equal to the effective date of the expense billing run is used.
If the earning allocation code is BONUS, the bonus rate applicable as at the effective date of the expense billing run is used.
Market value
The market value of the member's investments per portfolio will be calculated depending on the earning allocation code:
- If the earning allocation code is UNITISED, the unit balance will be multiplied by the unit price.
- If the earning allocation code is BONUS, interest from the date interest was last calculated to the effective date of the expense billing run will be calculated and added to the monetary balance
The percentage on the scale on the expense rule for the benefit membership group to which the member is linked is read, and the percentage of market value per portfolio and income type is calculated.
The minimum and maximum values are read and if the percentage of market value is less than the minimum, the value is set to the minimum amount.
If the fee is greater than the maximum, the value will be set to the maximum amount.
If the type of scale is SLIDING SCALE, the percentage of market value will be calculated according to the applicable scales.
Business Transactions
The business transactions (BT’s) for the percentage of market value per portfolio and income type will be created with the same accounting activities as for other expenses that are applied at the member level, i.e. MEMEXPENSE and MEMEXPREAL.
The scheme transactions (FEEBILLING) for the sum of the member transactions will be created.
Note:
If the number of units to be disinvested must be calculated using the unit price as at the effective date of the expense billing run, the transactions will be created with a transaction date equal to the effective date of the expense billing run.
When the JU3BH_BILL Expense Billing batch job is run the system will read the Expense Rules for the Expense Types for which the Global Group Type is CAPITAL BUDGET in addition to the Expense Types currently included in the Expense Billing batch job.
Where there is a Rate Table Type on the Expense Rule and there is a value for Maximum on the Scale linked to the Rate Table, the Member expense will be calculated based on the Expense Rule and the Scale. If the value calculated is greater than the value for Maximum on the Scale, the calculated value will be set to the Maximum value.
Similarly if there is a value for Minimum on the Scale and the calculated value is less than the value for Minimum on the Scale, the calculated value will be set to the Minimum value.
If the Calculation Method is CAPITAL BUDGET, the system will retrieve the BT’s in the Member’s CAP BUDGET account with a Due Date greater than the first day of the current year. If no BT is found, a value will be calculated for the Membership and proportioned for the period from the Membership CAR Start Date to the last day of the current year as follows:
Calculated value / 12 x number of months from CAR Start Date to last day of current year
If the Global Group Type for the Expense Type is CAPITAL BUDGET, Business Transactions (BT’s) will be created with the MEMBERBUDGET Accounting Activity. A Fund level BT will not be created.
When the fee for ad hoc payments is calculated, the expense rule for which the FORMULA APPLIED TO is PAYMENT REQUEST for the benefit membership Group to which the member is linked, is read.
For more detailed information, refer to
Processes
Expense Billing
Expense Calculation and Billing