Fees payable payment run

Fees payable payment run

Fees payable are fees that are paid by the finance company to 3rd parties example custodians and trustees. It is VERY IMPORTANT that parties are paid through the payment runs. 


Fees payable can be generated in two ways:
  1. Automatically by a service
  2. Manually

Fees payable payment runs generated automatically

A service exists that will automatically generate fees payable payments into a payment run in order to pay parties that earn fees.

Fees payable payment runs will be generated from within each asset class for portfolio fees and also from within fund control for funds under management fees

This service will run at the following times:
  • On the 1st of every month to process payments for payable fees that have a payment frequency of ‘Monthly'.
  • On the 1st day of every quarter to process payments for payable fees that have a payment payment frequency of ‘Quarterly'.

Fees payable payment runs generated manually by a user with Fusion

Payment runs can also be created manually.  See this article for details. This can be done in emergencies when a party is wanting payment prior to an automated payment run being generated.


All payments that a payment run has generated to be paid to parties, will be available for review and altered before they are processed. 

Clearmatch  does not do accruals for these fee payments as the number of parties is unknown due to the fact that the finance company can define any number of payable fees. The values are thus retrieved from the Datawarehouse for each day of the payment run and the values added together. 
  1. For Asset classes if the “Type” on the fees business rule on the originator group product is set to “Amount” then the fees to pay will be the number of investments that have an outstanding balance (excluding written off and settled accounts) * the fee amount. If the “Type” on the fees business rule on the originator group product is set to “Percentage” then the fees to pay will be the outstanding balance of all investments (excluding written off and settled accounts) * the fee percentage.
  2. For Fund the fees to pay will be the balance of the cash in the fund account * the fee percentage.
The amounts to pay will be loaded into a payment run and displayed on the “fees payable payments” page for a user to review and confirm before the direct credit file to be sent to the bank is generated. 

A fees payable payment run will be generated:
  1. For Asset classes - for each combination of the following and will appear in each asset class
    1. Finance Company
    2. Originator Group
    3.  Product

             Only investments that have the above combinations will be included in the payment run. 

There may be instances where the investments of certain investors need to be excluded from the fees being paid 
OR investments on certain investors get charged a different rate.
In these cases fees payable spreads can be captured against the investors to either reduce or increase the rate.
  1.  For Fund - for each combination of the following and will appear in fund: 
    1. Finance Company

            


1. To view the fees payable payment runs, log in to Clearmatch Fusion, select "fund control" or the asset class you want to do payments from, and navigate to > Configuration > Organisational Structure > Fees Payable Payments  


 

2. Select the payment run that you would like to view from the list.




3. The payment run details will be displayed showing  a breakdown of payment for each party (example custodian and trustees).



The following details will be displayed per party
  1. Calculated Amount - the value that the platform has calculated should be paid to the party
  2. To Pay - the amount that will be paid.
  3. Paid Amount - The amount that was paid

4. Selecting an item in the list will open a page that will show a daily breakdown that makes up the calculated amount.



The following details will be displayed per party

  1. Number Of Investments - The number of all investment on the portfolio / asset class, excluding written off and settled accounts, for the day
  2. Outstanding Balance – The outstanding balance of all investment on the portfolio / asset class, excluding written off and settled accounts, for the day
  3. Calculated Amount – The fee amount calculated by the payment run for the day

5. Selecting a specific day in the list will open a page that will show a breakdown for each investor for the day.




From within the payment run there will be options to do the following from the hamburger menu
  1. Adjust a payment amount. See here for details.
  2. Process a payment. See here for details.
  3. Cancel a payment run. See here for details.





    • Related Articles

    • Cancel a fees payable payment run

      When a fees payable payment run is cancelled, the details are updated so that the transactions that generated the payment are led and handled correctly as 'overs and unders' in the next payment run. The 'overs and unders" are transactions that have ...

    • Manually create a fees payable payment run

      There may be instances where a party would like to be paid and is not willing to wait for the automated payment run to take place as per the next schedule. It these cases a payment run can be manually created. You will not be allowed to create a ...

    • Adjust a fees payable payment run

      There may be instances where a finance company would like to adjust the amount paid to the parties and not pay the full amount as has been calculated by the automated payment run. Payment runs can only be adjusted if they have not already been ...

    • Process a fees payable payment run - pay the parties

      When a payment run has been created either automatically or manually the status of the run will be "Pending", indicating that it is available for review. Once reviewed the payment run will need to be generated in order to make the payment to the ...

    • Fees payable spreads - override

      After a fees payable details in the fees business rules have been created in Fusion (please refer to the article here with instructions on how to do this), fees payable spreads can be created against investors, in order to either increase or decrease ...