There are three routinely generated reports posted for you in the Advisor Portal in My Files:
Forecast Billing
Revenue & Expense Statement
Final Billing Report
Forecast Billing - one per associated rep code
This report is generated approximately two weeks (ten business days) prior to the end of every quarter in preparation for quarterly advisory billing. This report's objective is for you to review all of your applicable rep codes, accounts, fee schedules and get a close approximation of quarterly gross fees before splits, expenses and adjustments and allows you time to make updates with Advisory Services. It also provides you with an Insufficient Funds tab which reflects any accounts that would reject for insufficient funds if we were to debit that day. This information allows you adequate time to move cash or make cash raising trades, if necessary, in advance of our attempt to collect the fees. The Forecast report is a snapshot of that moment in time and reflects the account values as of the date they are run. This report is regenerated, and overwritten, on the first business day of the quarter for an additional, and more accurate view of what will be billed. It is important to note that final billing numbers may vary from the final Forecast reports based on Orion reconciliations in the interim. Also note that any forecast does not include Other Advisory Services or any applicable expenses.
This report is the best way to estimate the Advisory Fee portion your gross pay and the applicable Managed Account Charges. If you have an applicable split code or override, you will need to account for those if attempting to estimate your quarterly Advisory Fee revenue. If you would like more information, please reach out to Client Compensation or your Relationship Manager for assistance. We have a generic template we can provide you with to help you.
Revenue & Expense Statement - comprehensive calculation of all associated rep codes
This report reflects exactly what you were paid for and rolls up everything that goes into your primary, individual rep code. This shows you what actually happened - actual collections, actual expenses and/or adjustments for that time period. Note that if no revenue is received (Advisory Fee or otherwise), and there are no expenses or adjustments during the applicable revenue and expense period - a report will not generate. These reports are published in My Files no later than the direct deposit date (most commonly the business day before). They are run for two static time periods - Period 1 is the 1st thru the 15th and Period 2 is the 16th thru the end of the month and are paid five business days after the end of the period.
To check Managed Account Charge calculations, you can back into the bps charged by:
Managed Account Charge/Market Value*92/365 (92/365 representing the number of days in the quarter over the number of days in the year)
If the transaction is part of a split code, your basis points calculation will be based on the primary bps x split percentage. For example, 30/70 splits on 12 bps would look like this:
.0012*30% = .0004
.0012*70% = .0008
However, it is extremely important to note that the Market Value reflected on these reports is the account value as of the quarter end date and does not reflect cash flows. The vast majority of the time, the impact of cash flows is likely the reason for any discrepancy.
Final Billing Report - one per associated rep code
This is similar to the Forecast Billing Report. It will show you a per Revenue and Expense period breakdown, by individual applicable rep code, of current collections and/or rejections. This is generated and posted the same day as your direct deposit date. Similar to the forecast report, it will not break down by your individual split percentage, but your portion can be derived in the same way as the Forecast Billing report from the Account Detail tab. Unlike the Revenue and Expense report, this will reflect cash flows (which impact Managed Account Charge calculations). You can follow the same methodology as the provided Forecast Template to tie out to your Revenue & Expense statement - bearing in mind that this report only reflects Advisory Fee billing and does not reflect adjustments and/or expenses.