How can I allocate separately billed investment fees to all funds in a pool?

Sometimes an investment manager will invoice you for management fees instead of electronically transferring them and showing them as deducted on your statement.  In this situation you will need to add an Administrative Voucher in Accounts Payable and pay them by check.  Once you have paid the invoice out of the Operating Fund (or another fund), it is sometimes necessary to allocate the expenses to all the participating Funds in the Pool.   The easiest way to do this is to use the Allocation and Entries utility.

These steps require that the fund which is paying the expense is also part of the pool and has the pool asset GL account assigned to it:

1. Allocation and Entries

• Go to General Ledger > Journal Entry supertab > Automatic Entries tab and run the Allocation and Entries routine.
• For selections choose period 00 through the ending period desired.
• In Base allocations on field choose Average Daily Balance.
• In Base allocations on the value of G/L accounts from field choose the Pool asset account of the fund that paid the fee in both the from and through fields.
• In the  Enter amount to allocate field put the value of the invoice.
• Enter the expense account as the Debit and the Pool asset account as the Credit.  Both of these accounts would be the accounts from the fund that paid the fee.
• Click OK, then OK on the Fund Selection Screen, and then click Run Report.
• Examine the report for accuracy, then click Create G/L Entries at the top of the viewer, fill out the journal template and click OK.
• Run the Edit and Post procedure for the entries. 

2. Manual journal entry

• Once you have created entries you will have to add another manual journal entry to debit the Pool and credit the expense account for the Fund that actually paid the full invoice and post that manual entry

Once you post the allocation and entries journal entries and the manual journal entry, you will see those entries appear on the transaction tab of the investment account in FACTS for the cycle that pertains to the GL apply dates that were used for those entries.

None of these entries will be recorded in AP on the voucher that was created and paid. This process happens outside of and after the AP process to pay the expense.