; FAQ 417: Allocations--Segregated accounts' earnings zeroed out during calculations

FAQ 417: Allocations--Segregated accounts' earnings zeroed out during calculations


We created 2 funds, one for the individual accounts and one for the pooled. Beginning balances were entered, and a contribution was calculated.

We used the "Interest from Balance" routine and entered the interest for the 2 people with the individual accounts, creating a transaction, and then ran the transaction. Everything looks good, transactions show as being processed.

Then, we ran the valuation calculations to allocate the earnings to the pooled funds. Those 2 people now have interest, but the interest on the other 2 disappeared, although those transactions show as being processed. What did we do wrong?



The behavior that you are seeing is due to fund spec coding.
After processing the earnings transactions, you need to set the Earnings Definitions to "D-Input (Total Account)" so that they will be maintained if you subsequently run calculations. If you leave the Earnings Definitions set to "1-Prior Account" and run calculations, the system will allocate the amount in the "Fund Earnings" box (which could be zero) and the stored earnings will be wiped out.

So, the first thing that you need to do is to change the Earnings Definitions in the fund specs for fund 2 to "D-Input (Total Account)" and save the specs so this doesn't happen again. Since you stored the earnings as transactions, you could process those transactions again so that they are posted again to the employees' Account Values screens. To do this, choose Calculations-Transactions-Process, and process the following range of transactions:

Dates: 12/31/20xx - 12/31/20xx
Batch #s: 1 - 65000
Types: 6 - 6 (interest)
Sources: 1 - 20

Also, make sure that you check the "Override Processing Status" box, since these transactions have already been processed once. If you don't check that box, nothing will be posted to the employees' accounts since those transactions are set to "processed".

Then you should see the earnings in the employees' records, and since you have the Earnings Definitions set to "D-Input", you should be able to run calculations now without affecting the earnings amounts.