--- title: "Adding fees to a fund and automatically posting fee transactions" slug: "adding-fees-to-a-fund-and-automatically-posting-fee-transactions" updated: 2025-05-21T10:53:54Z published: 2025-05-21T10:53:54Z canonical: "support.lusid.com/adding-fees-to-a-fund-and-automatically-posting-fee-transactions" --- > ## Documentation Index > Fetch the complete documentation index at: https://support.lusid.com/llms.txt > Use this file to discover all available pages before exploring further. # Adding fees to a fund and automatically posting fee transactions In this tutorial we'll see how to use LUSID to perform the following task: **“I want to add different kinds of administration fee to a fund in order to calculate fund NAV correctly.”** We'll see how to: - [Create a fee type](/v1/docs/adding-fees-to-a-fund-and-automatically-posting-fee-transactions#creating-a-fee-type-to-determine-how-lusid-should-generate-fee-transactions) that determines how LUSID should generate transactions representing fee accruals and fee payments. - [Create transaction types](/v1/docs/adding-fees-to-a-fund-and-automatically-posting-fee-transactions#creating-transaction-types-for-fee-transactions-that-confer-a-suitable-economic-impact) for fee accrual and payment transactions that confer a suitable economic impact on holdings and upon journal entry lines. - [Add fees to the fund](/v1/docs/adding-fees-to-a-fund-and-automatically-posting-fee-transactions#adding-different-kinds-of-administration-fee-to-the-fund); one fixed fee and two percentage fees using different calculation bases. - [Value the fund](/v1/docs/adding-fees-to-a-fund-and-automatically-posting-fee-transactions#publishing-a-fund-valuation-at-end-january) and trigger LUSID to automatically generate fee accrual and payment transactions. - [Examine the impact of fee transactions](/v1/docs/adding-fees-to-a-fund-and-automatically-posting-fee-transactions#examining-the-impact-of-fee-transactions-at-end-january) on holdings, journal entry lines, and trial balance. A Jupyter Notebook containing code examples is coming soon. ## Creating a fee type to determine how LUSID should generate fee transactions LUSID can automatically generate transactions in a particular portfolio to post fees accrued to date, and also payments to settle those fees. We can call the [CreateFeeType](https://www.lusid.com/docs/api#operation/CreateFeeType) API to create a fee type for administration fees with two templates: one for generating fee accrual transactions, and one for generating fee payment transactions. [More on creating fee types](/v1/docs/how-do-i-create-a-fee-type). For example: ```json curl -X POST 'https://.lusid.com/api/api/feetypes/MyFeeTypes'  -H 'Content-Type: application/json-patch+json'  -H 'Authorization: Bearer '  -d '{ "code": "AdminFees", "displayName": "Admin fees", "description": "Generating transactions to accrue and settle admin fees for funds", "componentTransactions": [   {     "displayName": "Transaction representing admin fee accrual",     "transactionFieldMap": {       "transactionId": "{{FundFee.defaultFeeTransactionId}}-Accrual",       "type": "FeeAccrual",       "source": "default",       "instrument": "{{FundFee.feeInstrument}}",       "transactionDate": "{{FundFee.valuationPointDate}}",       "settlementDate": "{{FundFee.valuationPointDate}}",       "units": "{{FundFee.amount}}",       "transactionPrice": {         "price": "1.0",         "type": "Price"       },       "transactionCurrency": "{{FundFee.feeCurrency}}",       "exchangeRate": "1.0",       "totalConsideration": {         "currency": "{{FundFee.feeCurrency}}",         "amount": "{{FundFee.amount}}"       }     },     "transactionPropertyMap": []   },   {     "displayName": "Transaction representing admin fee payment",     "transactionFieldMap": {       "transactionId": "{{FundFee.defaultFeeTransactionId}}-Payable",       "type": "FeePayment",       "source": "default",       "instrument": "{{FundFee.feeInstrument}}",       "transactionDate": "{{FundFee.valuationPointDate}}",       "settlementDate": "{{FundFee.valuationPointDate}}",       "units": "{{FundFee.amount}}",       "transactionPrice": {         "price": "1.0",         "type": "Price"       },       "transactionCurrency": "{{FundFee.feeCurrency}}",       "exchangeRate": "1.0",       "totalConsideration": {         "currency": "{{FundFee.feeCurrency}}",         "amount": "{{FundFee.amount}}"       }     },     "transactionPropertyMap": []   } ] }' ``` Note the following: - The fee type has a unique ID consisting of a `MyFeeTypes` scope (specified in the URL) and an `AdminFees` code (specified in the request). - The first template in the `componentTransactions` collection defines transactions for fee accruals. Note the [transaction type](/v1/docs/what-is-a-transaction-type) is `FeeAccrual`, [domiciled in a source](/v1/docs/grouping-related-transaction-types-using-scopes-and-sources) of `default`. - The second template defines transactions for fee payments. The transaction type is `FeePayment`, domiciled in the same `default` source. All the other fields are the same for both templates. Most use Mustache template variables to populate the mandatory fields for a transaction in LUSID with data from a fee at run time: - The `{{FundFee.defaultFeeTransactionId}}` variable consists of the fee code and valuation point date. It is designed to generate a unique identifier for a transaction in a portfolio. - The `{{FundFee.feeInstrument}}` and `{{FundFee.feeCurrency}}` variables represent the accrual currency of the fee, for example GBP. - The `{{FundFee.valuationPointDate}}` variable represents the point in time at which you finalise the fund valuation and trigger LUSID to generate fee transactions. Note the transaction and settlement dates must be the same, so no temporary holdings nor ‘commitment’ journal entry lines are generated. - The `{{FundFee.feeAmount}}` variable is the amount accrued (and thus payable) since the last valuation point. - The fields in the `transactionPrice` object should always be `1.0` and `Price`. These fields are informational only and not used in calculations by LUSID. - The `exchangeRate` field should always be set to `1.0`. It is not possible to have different transaction and settlement currencies for fees. ## Creating transaction types for fee transactions that confer a suitable economic impact To meet the requirements of the transaction templates, we can call the [SetTransactionType](https://www.lusid.com/docs/api#operation/SetTransactionType) API to create `FeeAccrual` and `FeePayment` transaction types domiciled in the `default` source. [More on creating transaction types](/v1/docs/how-do-i-create-a-transaction-type). | `FeeAccrual` transaction type | `FeePayment` transaction type | | --- | --- | | ```json curl -X PUT 'https://.lusid.com/api/api/ transactionconfiguration/types/default/FeeAccrual?scope=default' -H 'Content-Type: application/json-patch+json' -H 'Authorization: Bearer ' -d '{ "aliases": [ { "type": "FeeAccrual", "description": "Type for fund fee accruals", "transactionClass": "Basic", "transactionRoles": "AllRoles", "isDefault": false } ], "movements": [ { "movementTypes": "CashAccrual", "side": "Side1", "direction": -1, "mappings": [ { "propertyKey": "Transaction/SHKs/AdminFees", "setTo": "Admin fees" } ] }, { "movementTypes": "Fee", "side": "Side1", "direction": -1 } ] }' ``` | ```json curl -X PUT 'https://.lusid.com/api/api/ transactionconfiguration/types/default/FeePayment?scope=default' -H 'Content-Type: application/json-patch+json' -H 'Authorization: Bearer ' -d '{ "aliases": [ { "type": "FeePayment", "description": "Type for fund fee payments", "transactionClass": "Basic", "transactionRoles": "AllRoles", "isDefault": false } ], "movements": [ { "movementTypes": "CashAccrual", "side": "Side1", "direction": 1, "mappings": [ { "propertyKey": "Transaction/SHKs/AdminFees", "setTo": "Admin fees" } ] }, { "movementTypes": "CashCommitment", "side": "Side1", "direction": -1, "mappings": [ { "propertyKey": "Transaction/SHKs/CashForFees", "setTo": "Cash for fees" } ] } ] }' ``` | | The first movement decreases a cash holding managed by a `Transaction/SHKs/AdminFees` [sub-holding key](/v1/docs/what-is-a-sub-holding-key-shk) (SHK) by the fee accrual amount, and generates a `NA_COST` [journal entry line](/v1/docs/what-are-economic-buckets) for a credit of that amount. Note the use of SHKs in this example is optional, but improves the comprehensibility of portfolio holdings. The second movement generates a `PL_Fees` journal entry line for a debit of the fee accrual amount, to balance the above. | The first movement increases a cash holding managed by a `Transaction/SHKs/AdminFees` SHK by the fee payment amount, and generates a `NA_COST` journal entry line for a debit of that amount. The second movement decreases a cash holding managed by a `Transaction/SHKs/CashForFees` SHK by the fee payment amount, and generates a `NA_COST` journal entry line for a credit of that amount, to balance the above. | ## Adding different kinds of administration fee to the fund Let’s imagine we have a GBP-denominated fund with an inception date of 1 January 2024 that we value at the end of each month. The following annual administration fees apply to this fund: 1. A fixed printing fee of £2,500. 2. A variable management fee of 1% of fund GAV. 3. A variable custody fee of 0.5% of fund NAV (which is GAV minus all other fees). > **Note**: You can add fees to one or some share classes rather than the whole fund. [More information](/v1/docs/how-do-i-add-a-fee-to-a-fund). To add a fee, we call the [CreateFee](https://www.lusid.com/docs/api#operation/CreateFee) API, specifying the scope and code of the fee type, and: - For a fixed fee, a `totalAnnualAccrualAmount`, in this case `2500`. - For a percentage fee: - A `feeRatePercentage` expressed as a decimal, for example `0.01` to represent 1% annually, or `0.005` to represent 0.5%. - A `calculationBase` to determine the amount to calculate a percentage from, for example the entire fund `GAV`, or an [expression](/v1/docs/how-do-i-add-a-fee-to-a-fund#appendix-specifying-a-calculation-base-for-a-percentage-fee) to first subtract one or more fees. [More information on adding fees](/v1/docs/how-do-i-add-a-fee-to-a-fund). For example: | **Fee** | **API call** | | --- | --- | | Fixed printing fee | ```json curl -X POST 'https://.lusid.com/api/api/funds/Growth/UKEquities/fees' -H 'Content-Type: application/json-patch+json' -H 'Authorization: Bearer ' -d '{ "code": "FixedPrintingFee", "feeTypeId": {"scope": "MyFeeTypes", "code": "AdminFees"}, "displayName": "Fixed printing fee", "accrualCurrency": "GBP", "treatment": "Monthly", "totalAnnualAccrualAmount": 2500, "payableFrequency": "Quarterly", "businessDayConvention": "None", "startDate": "2024-01-01T00:00:00.0000000+00:00", "endDate": "2024-12-31T23:59:59.0000000+00:00", }' ``` | | Variable management fee | ```json curl -X POST 'https://.lusid.com/api/api/funds/Growth/UKEquities/fees' -H 'Content-Type: application/json-patch+json' -H 'Authorization: Bearer ' -d '{ "code": "VariableManagementFee", "feeTypeId": {"scope": "MyFeeTypes", "code": "AdminFees"}, "displayName": "Variable management fee", "accrualCurrency": "GBP", "treatment": "Monthly", "feeRatePercentage": 0.01, "calculationBase": "GAV", "payableFrequency": "Quarterly", "businessDayConvention": "None", "startDate": "2024-01-01T00:00:00.0000000+00:00", "endDate": "2024-12-31T23:59:59.0000000+00:00", }' ``` | | Variable custody fee | ```json curl -X POST 'https://.lusid.com/api/api/funds/Growth/UKEquities/fees' -H 'Content-Type: application/json-patch+json' -H 'Authorization: Bearer ' -d '{ "code": "VariableCustodyFee", "feeTypeId": {"scope": "MyFeeTypes", "code": "AdminFees"}, "displayName": "Variable custody fee", "accrualCurrency": "GBP", "treatment": "Monthly", "feeRatePercentage": 0.005, "calculationBase": "GAV-Fees[FixedPrintingFee].Amount-Fees[VariableManagementFee].Amount", "payableFrequency": "Quarterly", "businessDayConvention": "None", "startDate": "2024-01-01T00:00:00.0000000+00:00", "endDate": "2024-12-31T23:59:59.0000000+00:00", }' ``` | Note the following: - All fees reference the fee type created [in the first section](/v1/docs/adding-fees-to-a-fund-and-automatically-posting-fee-transactions#creating-a-fee-type-to-determine-how-lusid-should-generate-fee-transactions). - All fees have a `treatment` of `Monthly`, which means LUSID calculates the amount accrued to date by dividing the annual amount by 12 and multiplying by the day number of the valuation point. The alternative is `Daily`, in which case LUSID divides the annual amount by 365 days (or 366 in a leap year) and multiplies by the day number of the valuation point. The two treatments generate slightly different accrual amounts for a given date (see the examples below). - All fees have a `paymentFrequency` of `Quarterly`, which means that payment transactions are generated four times a year. In our example, the anchor date is the default of 1 January, so payment transactions are generated on 1 April, 1 July, 1 October, and 1 January the following year. - All fees have a `businessDayConvention` of `None`, which means LUSID treats weekends as normal business days for the purposes of calculating fee accruals. - The variable management fee has a `calculationBase` of `GAV`, which means LUSID uses the entire fund GAV at the valuation point time as the annual basis for calculating 1%. - The variable custody fee has a `calculationBase` of `GAV-Fees[FixedPrintingFee].Amount-Fees[VariableManagementFee].Amount`, which means LUSID first subtracts the other fees accrued to date before using the remainder at the valuation point time as the annual basis for calculating 0.5%. [More information](/v1/docs/how-do-i-add-a-fee-to-a-fund#appendix-specifying-a-calculation-base-for-a-percentage-fee). ## Publishing a fund valuation at end January On 31 January at 5pm we call the [GetValuationPointData](https://www.lusid.com/docs/api#operation/GetValuationPointData) API to generate an estimate of fund value. [More on valuing funds](/v1/docs/valuing-a-fund-calculating-gav-nav-and-other-pricing-data). For example: ![](https://cdn.document360.io/d575ad81-c0ed-4980-bbd1-d59ac5c3de82/Images/Documentation/c9735e16-979a-4422-bebb-36698842767d.png) We can see that the fund GAV on 31 January is `400000`. With this GAV in mind, LUSID calculates fees as follows: | **Fee** | **Since fee** `treatment` is `Monthly`... | **If fee** `treatment` were `Daily`... | | --- | --- | --- | | **Calculation** | **Accrual on 31 January** | **Calculation (2024 being a leap year)** | **Accrual on 31 January** | | Fixed printing fee | `2500 / 12` | `208.33` | `(2500 / 366) * 31` | `211.75` | | Variable management fee | `(400000 x 0.01) / 12` | `333.33` | `((400000 * 0.01) / 366) * 31` | `338.80` | | Variable custody fee | `((400000 - 208.33 - 333.33) * 0.005) / 12` | `166.44` | `(((400000 - 211.75 - 338.80) * 0.005) / 366) * 31` | `169.17` | | **TOTAL** | | `708.10` | | `719.72` | The fund NAV on 31 January is calculated as GAV minus fees accrued to date, so: - Since fee `treatment` is `Monthly`, this is `400000 - 208.33 - 333.33 - 166.44 = 399291.90`. - If fee `treatment` were `Daily`, this would be `400000 - 211.75 - 338.80 - 169.17 = 399280.28`. If this estimate is correct we call the [AcceptEstimateValuationPoint](https://www.lusid.com/docs/api#operation/AcceptEstimateValuationPoint) API to finalise the valuation for January. Providing nothing has changed, LUSID persists the data and automatically generates fee transactions. ## Examining the impact of fee transactions at end January When the fund valuation is finalised, LUSID automatically generates one fee accrual transaction dated 31 January for each fee, for the amount accrued to date. In our example, LUSID does not create corresponding fee payment transactions on 31 January because the `payableFrequency` for all fees is `Quarterly`, anchored from 1 January 2024. This means the first accrual payment transactions are due on 1 April. ### Transactions LUSID generates fee accrual transactions as input transactions in a particular transaction portfolio underlying the fund; we can call the [GetTransactions](https://www.lusid.com/docs/api#operation/GetTransactions) API to examine them (in this case using the LUSID web app): ![](https://cdn.document360.io/d575ad81-c0ed-4980-bbd1-d59ac5c3de82/Images/Documentation/1e74f51e-8863-49ab-830a-4a283f430f91.png) > **Note**: LUSID simultaneously transforms these input transactions to [output transactions](/v1/docs/input-and-output-transactions), with extra information such as realised gain/loss. ### Holdings We can call the [GetHoldings](https://www.lusid.com/docs/api#operation/GetHoldings) API to examine the impact of fee accrual transactions on holdings for the underlying portfolio: ![](https://cdn.document360.io/d575ad81-c0ed-4980-bbd1-d59ac5c3de82/Images/Documentation/65592155-c336-41bd-b0ef-bc6b311180a0.png) ### Journal entry lines We can call the [GetJournalEntryLines](https://www.lusid.com/docs/api#operation/GetJournalEntryLines) API to examine the balanced pairs of journal entry lines generated by fee accrual transactions: ![](https://cdn.document360.io/d575ad81-c0ed-4980-bbd1-d59ac5c3de82/Images/Documentation/faf0c3e5-0aa4-4c5c-a46b-723776619db9.png)