If a transaction happens mid-period, because you bill forwards, BillFin will apply either a positive or negative fee adjustment in the upcoming billing cycle depending on whether money is deposited into or withdrawn from an account. A fee prior to the transaction is required for BillFin to adjust the flow transaction. If no prior fee is found, BillFin cannot adjust that fee and will generate the following alert: "Client is missing the effective rate for the previous billing. Please use manual adjustments to complete your work."
The fee adjustment is calculated by taking the flow amount * the period effective rate used for calculating the fee prior to the transaction date * number of days the amount was in or out of the account / days in the billing period.
Deposit Example for Client Billed Monthly Forwards:
Deposit of $40,000 on 3/27/23
March Cycle Fee Calculation (Prior to Transaction) = $100,000 * 10BPS (period effective rate) = $100
April Cycle Transaction Fee Adjustment (After Transaction) = $40,000 *10BPS (March period effective rate) * (5/31) = $6.45
*This adjustment will be applied to the April cycle fee (next fee after the transaction date)
Withdrawal Example for Client Billed Monthly Forwards:
Withdrawal of $40,000 on 3/27/23
March Cycle Fee Calculation (Prior to Transaction) = $100,000 * 10BPS (period effective rate) = $100
April Cycle Transaction Fee Adjustment (After Transaction) = $40,000 *10BPS (March period effective rate) * (5/31) = -$6.45
*This adjustment will be applied to the April cycle fee (next fee after the transaction date)