Revenue share functionality allows foundations that manage funds in investment pools to share investment gains, losses, and fees on a monthly, quarterly, and yearly basis. Revenue share can be run for both statement vouchers and traditional vouchers.
Who: Finance or accounting teams.
Use Revenue Share When
- Funds are held in shared investment pools and gains, losses, or fees need to be distributed proportionally among those funds.
- Investment activity needs to be allocated across funds on a regular schedule.
Revenue Share Calculations and Limitations
Revenue share cannot be run unless there are statement vouchers or traditional vouchers to be paid from the Z_Revenue Share Holding fund for the selected dates.
The revenue share feature identifies the funds and their percentage within a specific investment/banking account, then calculates the average daily balance for each day instead of only once or twice per month. The system calculates fund balances out eight decimal places, so $5,000.00 would be calculates as $5,000.00000000.
Balances are rounded when interest calculations result in fractions of a penny. These fractions of a penny are deposited into the fund with the most assets.
Investment Account Setup
In order to run a revenue share, investment accounts must have an assigned vendor, and Manage Cash must be enabled.
If individual accounts are being reconciled, then establish an account as a revenue share parent to a fund or group of funds. Revenue share parent allows an account to be linked to multiple investment pools for revenue share calculations. This is recommended when sub-accounts are being used.
Resource:
Run or Modify Revenue Share
Prior to running revenue share, enter all gains, losses, and fees incurred as a statement voucher in the Z_Revenue Share Holding fund.
It is not required, but is strongly recommended, that accounts be reconciled prior to running revenue share.
Resources:
Revenue Share Video
This video defines the purpose of revenue share in CommunitySuite and demonstrates the steps to run a revenue share and the connection between cash management and revenue share.