Record management fees and expenses

By the end of this guide you'll be able to read a holding's fee summary, see which management fee cycles are due or missed for each share class, record a management fee run from a draft Covercy One works out for you, record a holding-level expense, and replace or delete a charge you've already recorded.

Open the Fees tab

1. Go to Holdings and open the holding you want to work on.
2. Select the Fees tab, which sits right after Classes.
3. Review the page from top to bottom: the charge summary, the Management fees section with each class's terms, each class's fee cycles, and the list of recorded charges.

Read the charge summary

The summary at the top of the tab shows three figures:

• Management fee last charged — the most recent management fee and the period it covers, compared with the cycle before it (named by its period). If several share classes were charged for the same period, their charges are combined into one figure for that cycle. If no management fee has ever been recorded, the summary says so rather than showing zero.
• Other charges year to date — the holding-level expenses recorded in the current calendar year.
• Next management fee charge date — shown once for the holding when every class with terms charges on the same schedule, or per class when they differ. If no class has terms yet, this is flagged as a gap to fill.

Review each class's fee cycles

Each share class with management fee terms gets its own list of billing cycles, built from that class's own schedule. If a class's terms changed over time — for example a new rate or a different cadence — each cycle follows the terms that applied to it. Every cycle shows one of four states:

• Recorded — a management fee has been recorded for that class and period. The cycle shows the recorded total.
• Due — the cycle's charge date has passed and nothing has been recorded for it yet.
• Missed — nothing was recorded for this cycle, but a later cycle on the same class was. Missed cycles are shown differently from due ones, because a skipped period is a different situation from the current period not being billed yet.
• Upcoming — the cycle's charge date is still in the future.

When every due cycle on a class is recorded, the list says the class is up to date and shows the next cycle as upcoming. A long run of missed cycles may be collapsed behind a count, and older recorded cycles may be shortened to a count — expand either to see every cycle.

Record a management fee run from a cycle

A management fee run charges one share class for one period. If you bill several classes, record a run for each one.

1. In the class's cycle list, find a cycle marked Due or Missed and select its billing action. You don't need to type the period — the draft covers exactly the cycle you picked.
2. Review the draft. It shows the period, the charge date, and a proposed amount for each position on that class. The class's rate, convention and cadence are stated once at the top of the run.
3. Check each position's line. It shows the basis the fee was worked out from (such as the position's commitment and the date it was measured on) and the resulting amount, so you can confirm the figure.
4. To use a different figure for a position, type over its amount. The line then notes that the worked-out figure was replaced, and the amount you entered is the one that's recorded.
5. If needed, change the period or the charge date. When you choose a different period, the charge date and amounts are worked out again for that period.
6. Select Save to record the run, or discard the draft to return to an empty form without recording anything.

An Upcoming cycle can be billed the same way if your fund charges in advance. A Recorded cycle has no billing action, because its period is already charged.

When a draft can't be worked out

Instead of proposing a figure it can't support, Covercy One tells you why and what to do next. Anything you've already typed into the form stays in place.

• The period is already recorded for this class — the message points to the existing charge. To change it, replace that charge instead. A charge another class holds for the same period doesn't block this one.
• No position on the class has a basis on the measurement date — choose a different period, or enter the run's amounts by hand.
• The class's terms need correcting — open the class's terms and fix the setting named in the message.
• Nothing outstanding — every due cycle on the class is already recorded.

Record a management fee run by hand

1. In the charges section, select Record a management fee run.
2. Choose the share class the run charges.
3. Choose the period the run covers. A period that doesn't match the class's schedule — such as a partial historical cycle you're correcting — is accepted and marked as off-schedule.
4. Enter an amount for each position you're charging. Leave a position blank to record nothing for it.
5. Select Save.

Record a holding-level expense

Use an expense for costs the holding bears as a whole, such as audit, legal and compliance, or taxes.

1. In the charges section, select Record a holding-level expense.
2. Pick the expense type. The most common types are listed first; select show all to see the rest.
3. Enter the expense's total amount.
4. Choose the allocation method — how the expense is shared across the holding's positions, for example pro rata by commitments.
5. Enter the as-of date the allocation is measured on.
6. Select Save.

Replace or delete a charge

The charges section lists every recorded charge with its type, period or date, amount, and — for management fee runs — its share class. Two classes can each have a run for the same period, so check the class before you change a row. You can search the list by share class name to find one class's runs.

1. Find the charge in the charges section.
2. To correct it, choose to replace it, update the period, date or amounts, and save. Replacing one class's run doesn't affect another class's run for the same period.
3. To remove it, choose to delete it and confirm.

How recorded charges reach your statements

Setting terms, viewing cycles and working out a draft change no figure anywhere. Once you save a charge, the capital account statement shows recorded management fees and holding-level expenses as their own lines for the period the charge is dated in. If a holding has no recorded charges in a period, no fee or expense lines appear for it. When you replace or delete a charge, the statement reflects the change.

Check your work and get help

After you save a run, the cycle you billed shows as Recorded with its total, the charge appears in the charges section with its class, and the summary's last-charged figure updates. After you save an expense, it appears in the charges section and in the year-to-date figure. If a figure doesn't look right, or a class's cycles don't appear as you expect, check the class's terms on the Fees tab first, then contact Covercy support.