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Create Payout Distribution

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These settings allow you to set up payout distributions for an individual account. A payout distribution allows you to designate how the revenue from the account's billed amount is distributed to the designated payees. Payout distribution data are reported on the Firm Revenue report. You can use the Account Billing Payout Distributions bulk report and upload to edit payout distributions.

Setting Details
Effective Date Designate when the payout distribution for the specific account takes effect. It can be any time from inception onward.
Add User

Click this button to add a payout distribution for a firm user.
Add Other

Click this button to add a payout distribution for a third party, such as a custodian or SMA manager.
Payee

This setting allows you to select from the list of users for a payout distribution.

  • For User payees, you can select from a list of all firm users enabled for a payout. For more information about enabling users, see User Management.

  • For Other payees, you can also add other users, such as SMA managers or the custodian.

For more information about the Payee setting, see Payee.
Distribution Amount

This setting allows you to designate what payout percentage each payee should receive. For example, for an advisor who receives 90% of the revenue from a billed account, you would enter 90.

For more information about where to set up payout distributions, see Setting Up Payout Distributions.

Note

By default, 100% of the payout distributions are set to the firm. When you designate other payees, their payout distributions are subtracted from that 100% total, and the firm receives whatever portion is left.

 

To set up payout distributions at the account level, see The Billing Settings Panel. To set up payout distributions at the user level, see Manage Permissions for Billing.

Example: Manual Entry

Akshaya Garg is designated to receive 80% of the revenue from her accounts, the custodian receives 5%, and the firm receives the remaining 15%.

The account's Billing Settings are configured to:

Payee Configuration Payout Distribution
Firm Set by default Automatically calculated at 15%
Akshaya Garg Selected from the User Payee list 80%
Schwab Manually typed in as Other 5%

 

By default, the firm starts with 100% of the payout percentage, and all payout percentages are automatically subtracted from that. Any remainder is attributed to the firm by default. In Jane's case, the firm is automatically allocated the 15% remaining after Akshaya and the custodian each get their percentages.

Example: Upload Data Set

Akshaya Garg manages the account ending in 0803. Akshaya is designated to receive 80% of the revenue from her accounts, the custodian receives 5%, and the firm receives the remaining 15%.

The upload data set for the account managed by Jane looks like this:

Account Number Payee Type Payee Payout Effective Since Inception Payout Percentage
999-0803 User Akshaya Garg Yes 80
999-0803 Other Schwab Yes 5

 

Notice that the firm isn't mentioned in the upload data set. That's because the firm is assumed to start with 100% of the payout percentage, and all payout percentages are subtracted from that. Any remainder is attributed to the firm by default. In Akshaya's case, the firm is automatically allocated the remaining 15% after Akshaya and the custodian each get their percentages.