Payout Feature (External Fees Only)
Payouts is a solution to quickly get advisors' payouts, commissions, or carveouts from their clients' fees. It is split up into three sections: payees, rules and reports. Explanations and steps to set up are below.
Payees
In this section, users will add multiple payees to include in their payout rules/reports each cycle. Payees can include the firm, advisors, referral program, etc... Any entity that should get a portion of a client's fee should be added as a payee. Use the steps below to set up your payees.
Add Payee:
- Click "Payees"
- Click " % Add A Payee"
- Enter name of Payee (Firm, Advisor, Referral program, etc...)
- Click Save
Rules
After entering all payees, this section will allow users to create different payout rules on the firm, client and/or account levels. Use the steps below to set up payout rules. It is important to note that accounts with no advisor assigned to it will not generate any payout based on firm payout rules except for rules applied to "All" Accounts. Client-level rules will override Firm-level rules and Account-level rules will override both Client-level and Firm-level rules. Also, BillFin does not require rules equal 100% of the fee so rules can produce payouts of more or less than 100%.
Firm Default Rule(s) Setup:
- Click "Rules"
- Click "Create A New Rule"
- In slide out window, click the drop-down arrow under Payee name and choose a payee
- Enter the percentage in the "Payout" section
- Click either "All" or "Advisor"
*If you chose "Advisor," Click the drop-down arrow and choose the advisor's name.
- Click "Save
Note: If you select "All," All accounts will be included in the payout calculation. If you select an "Advisor," all accounts assigned to that advisor will be included in the payout calculation.
*Firm-level rules can be edited at any time.
*Rules at the Client-level and Account-level cannot be edited. We suggest creating the new rule and assigning the same clients to that new rule and then deleting the old rule when needing to edit a Client-level or Account-level rule.
Client Rule(s) Setup:
- Click the "%" icon in top right of the page
- Click "Rules"
- Click "Clients" underneath "Payout Rules" title
- In the "Client Level Rules" section (right side), click the drop-down arrow under "Payee Name" and choose a payee
- Enter the percentage in the "Payout" section
- If you have multiple payees for this rule, you can click "Add Another Payout" under the payee's name to include multiple.
- If desired, you can include a name for you rule under "Custom Name This Rule?"
- In the "Select Clients" section (left side), check the box next to all clients that will be included in this payout rule
- Click "Apply" between the two sections
- Confirm clients moved from the left to the right
- Click "Create"
Account Rule(s) Setup:
- Click "Rules"
- Click "Accounts" underneath "Payout Rules" title
- In the "Account Level Rules" section (right side), click the drop-down arrow under "Payee Name" and choose a payee
- Enter the percentage in the "Payout" section
- If you have multiple payees for this rule, you can click "Add Another Payout" under the payee's name to include multiple.
- If desired, you can include a name for you rule under "Custom Name This Rule?"
- In the "Select Accounts" section (left side), check the box next to all accounts that will be included in this payout rule
- Click "Apply" between the two sections
- Confirm accounts moved from the left to the right
- Click "Create"
Reports
After collecting fees each cycle, you can run a Report to determine how to allocate those fees to your payees based on the payout rules that have been set up. This report will include the following in a csv file: Payee name, payout amount, fee amount, payout percent, client name, account name, account number. Here are steps to run this report. This report can be a summary which includes all advisors and payouts or an advisor-specific report with only the payouts for the desired payee.
Run Report
- Click "Reports"
- Click either "Summary" or "By Payee"
- If "By Payee," click the drop down arrow under "Payee Name" and choose a payee
- Click the drop down arrow under "Which Billing Period?" and select the cycle
- Click "Run Report"