Capitect provides advisors the ability to set up their custom fee schedules to calculate billing fees.
Capitect's billing solution offers the following fee schedule settings:
- Flat / AUM / Combination
- Billing Monthly / Quarterly / Annually
- Billing In Arrears / In Advance
- Calculate fees using the prior period's end balance / daily average
This article outlines the components of the fee schedule. Let's get started by creating a new fee schedule from Client Billing → Fee Schedules → Click 'Add +'.
Provide a name for the fee schedule. An advisor may have more than one fee schedule where the name can help summarize the fee schedule settings.
Choose a fee schedule type:
- Flat: Used for subscription (retainer) fee billing. If selected, the advisor can set the annual flat fee under the 'Flat Annual Fee' section and the fee will be divide equally based on the 'Billing Frequency' setting (ie Monthly billing frequency divides the annual fee by 12).
- AUM: Used for AUM (tiered) fee billing. If selected, the 'Fee Tiers' section can be used to set up the advisor's fee schedule tiers.
- Click on the 'Add Fee Tier' link to add more fee tiers.
- Use Blended Rate: Checked by default. Unchecking 'Use Blend Rate' calculates fees by a single fee tier.
- Combination: Fee schedule including both flat and AUM billing. Commonly used for advisors who offer planning (flat) and wealth management (AUM) services. In addition, the 'Combination' fee schedule can be used for advisors who have a minimum or maximum fee.
Set the fee schedule to calculate monthly, quarterly, or annually. Note: The billing rate is calculated using Actual/Average. For example, if billing monthly, fees are divided by 12 instead of using the actual number of days during the period divided by 365.
Choose a bill type:
- In Arrears: If selected, the 'Tiered Using' section appears with options to calculate client fees based on the prior period's end balance or daily average.
- In Advance: If selected, fees are calculated based on the prior period's end balance.
- Proration: The 'Proration' section appears with the option to include prorate fees on prior period deposits/withdrawals and new account balances on a minimum transaction and/or new account balance amount. Note: In the prior billing period, if there were net withdrawals, a prorated credit is applied to the invoice.
Security Type Exclusion/Inclusion
This setting is available on fee schedules calculating fees using the 'End Balances' on the prior period. The setting allows advisors to exclude security types from the billing fee calculation.
Allows the advisor to put a custom disclosure message on the generated fee invoice.