This setup questions is asking you how you break your annual rate down into billing-period portions. For example if you bill quarterly and simply divide your annual rate by 4 to get a quarterly rate then you would select Divide by 4. If you count the number of days in a period compared to the number of days in the year then select Actual Days. The same works for monthly, only the basic option is to divide by 12 instead of 4.

Please note that on Leap Years the Actual Days calculation will be slightly different from a normal year. This is because the days in the period will be divide by 366 instead of 365.

Examples:

 -Quarterly Divide by 4 Proration

Q1 of a normal year. Annual Rate / 4 = quarterly rate

$100,000 asset value, 100BPS rate

100BPS / 4 = 25BPS.

25BPS x $100,000 = Fee of $250

-Quarterly Actual Days Proration

Q1 of normal year. Annual Rate x (90/365) = quarterly rate

$100,000 asset value, 100BPS rate

100BPS * (90/365) = 24.66BPS

24.66BPS x $100,000 = Fee of $246.57