1

Morningstar® OfficeSM Classroom Training Quarter-End Billing

The main objective of this session is to learn how to troubleshoot common billing errors. × Review the billing process

× Run the Billing Information and Fee Calculation Report

× Review the Billing Information and Fee Calculation Report and identify clients with errors

× Run the Billing Setting Diagnosis Report to identify errors within a client record

× Diagnose and fix errors within Morningstar Office

For additional training on these topics, please refer to the Support and Training page on the Home tab, or contact your dedicated Client Solutions Consultant for one-on-one training, or call Product Support for general questions.

2

Billing Process Steps: Follow the steps below when creating your billing:

× Create Management Fees × Determine how to bill clients

× Apply Fee Methodologies

× Tell the system how to run calculations

× Assign Management Fees × Assign Fees based upon Methodology

× Create Management Fee Allocations

× Determine which client account to draw fees from

× Generate Fee Data × Run the billing calculations

× Create Billing Summaries

× Create the client’s bill

× Generate Custodian Fee Files × Create a list of client fees to upload to your custodian’s web site

Other Billing Activities Steps: In some cases, you made need to perform additional steps; including:

× Create Additional Charges or Discounts

× Exclude Accounts from Billing

× Exclude Securities from Billing

× Create a Billing Disclosure

NOTES:

3

Run Billing Information and Fee Calculation Report Step: Once you complete your billing cycle for the quarter, run the Billing Information and Fee Calculation report. This report provides billing details for the most recent billing cycle only. Path: Tool > Reports > Billing Management > Billing Information and Fee Calculation Report > Practice

NOTES:

4

Examine Billing Information and Fee Calculation Report Steps: Review the report and identify issues. In this case:

× Only one of three accounts owned by the Miles family are represented in the report × The account that is represented, does not contain the correct fee allocation × The account that is represented has a lower billable balance than expected

NOTES:

5

Diagnosing the problem Part 1: Run the Billing Setting Diagnosis Report Steps: Complete the following steps when diagnosing billing problems:

× Run the Billing Setting Diagnosis report for the Client identified in the Billing Information and Fee Calculation report as having a problem

× Save the Billing Settings Diagnosis to your hard drive × Navigate to your hard drive to launch Billing Settings Diagnosis report × Review the Billing Summary to confirm problems noted in the Billing Information and Calculation Report

Path: Client Management/Portfolio management tab > Billing > Billing Setting Diagnosis

6

Diagnosing the problem Part 2: Review Accounts Page in Client Record Step: Enter Client Record to further investigate the problem.

× Review Client Overview Page – Miles Joint account is greyed out (not included in client Aggregate)

NOTES:

7

Fixing Problems

1. Miles Joint Account excluded from the Aggregate Steps:

× Select Account × Actions > Exclude Account from > Client Aggregate > No

2. Individual Amy Miles Not Included in Management Fees Steps:

× Right click on Individual – Amy Miles account × Select Edit Account Settings × Select Include in Management Fee Calculations

NOTES:

8

Fixing Problems – Cont

3. Miles IRA Market Value does not match Billable Balance Steps:

× Double click on Account to view Holding Summary × Select Nighhawk Radiology Holdings, Inc. × Actions > Holding Settings × Deselect Exclude from Management Fee Calculations

NOTES:

9

Fixing Problems - Cont

4. Fee Allocation is incorrect Steps:

× Select Tools … Settings …. Setting Assignments × Scroll until you get to Fee Allocation Accounts × Click on the Magnifying glass. × From the Billing Accounts Dialog box, Click Add. × Select the Accounts you would like fees allocated to. × In the % fee Allocation columns, type the fee allocation percentage for each account. × Click Save + Close.

NOTES:

10

Fixing Problems - Cont

5. Cash is excluded at the Global Level Steps:

× From any Account Screen, click File … Preferences. × Click Exclude Securities × From the Exclude from Management Fees Column, deselect securities. × Click Save + Close.

NOTES:

11

Re-run Billing Diagnostic Report Steps: Review the report and note that the following issues have been corrected

× All three accounts owned by the Miles family are represented in the report × Both Taxable accounts are included in allocation (non-taxable account is not) × Holdings are not excluded at the Account or Global level.

NOTES:

12

Run Billing Summary Steps: Review the report and note that the following issues have been corrected

× All three accounts owned by the Miles family are represented in the report × Both Taxable accounts are included in allocation (non-taxable account is not) × Market Value and Billable Balance are the same × Billing date is incorrect.

NOTES:

13

Fix Billing Date Step: To change Billing from Advance to Arrears, complete the following steps:

× Select the Management Fee assigned to Client × From the Bill in field select Arrears

Path: Home > Settings >Reports, Tax Lots, Transactions and Management Fees

NOTES:

14

Final Billing Summary Step: Run the final billing summary to ensure that the Billing date is correct.

NOTES:

15

Troubleshooting Billing Checklist – Following these steps will help solve the most common Billing Issues. Use the Checklist Below to identify and solve Billing Discrepancies.

× Before you run your billing, review the Billing Settings and Validation Report o Reports > Billing Management > Billing Information and Management Fee Report

× Run batch billing for the quarter

× Run Billing Information and Calculation Report

o Reports > Billing Management > Billing Information and Management Fee Report

× Review Billing Information and Calculation Report to identity discrepancies

× Run Billing Settings Diagnostic Report for affected Client o Portfolio Management/Client Management > Billing > Billing Settings Diagnostic

× Correct errors.

× Re-run Billing Settings Diagnostic Report

o Portfolio Management/Client Management > Billing > Billing Settings Diagnostic

× Rerun Billing Summary o Portfolio Management/Client Management > Billing > Billing Summary

© 2013 Morningstar, Inc. All rights reserved.