Billing FAQ
Timelines:
~5 business days before the end of the Quarter/Month - Forecast billing files will be provided for you to review for accuracy.
~2 business days in the new Quarter/Month - Live billing files will be sent to you.
~3 business days in the new Quarter/Month - Management fees will be submitted to Schwab for processing.
~7 business days in the new Quarter/Month - Your payout will be sent to you via ACH.
~10 business days in the new Quarter/Month - Your payout should be deposited in your bank account.
Your Responsibilities:
- Verify Billing Accuracy: It is your responsibility to review all billing audit files that are sent to you to verify that the assigned fee schedules, one time or recurring adjustments, and payment methods are accurate. If any discrepancies are noticed, please reach out to our team as soon as possible so we can review and make corrections as needed.
- Provide Account Information Updates: If there are any changes to the account billing information please reach out to the support team immediately so we can make adjustments.
How to Read the Billing Audit Files
During the Quarter End / Month End process you will receive a Payable Summary spreadsheet to review. Below is a list of important items to review:
Pay Method: This column shows how the account is paying for its fees. Direct means that the balance will be taken directly from the account at Schwab, Indirect means the account is being paid by another account. The rows with Contribution/Distribution in this column are for mid quarter/month cash flows.
Billed Value: This column shows the market value of the account that is to be billed on.
Net Fees: This column shows the remaining fee amount after adjustments are accounted for.
Adjustments: This column will show any fee adjustments that have been applied to the account. You can add one time or recurring adjustments at the account or household level.
Net Due: This column shows the balance due from the client. It is calculated based on Bill Value and is the sum of Net Fees and Adjustments.
Days in Cycle - This column shows how many days the account is billed for during the billing period. For example, if you bill quarterly, the days in cycle for Q4 would be 92/365 because there are 92 days in that quarter. If you bill monthly, the days in cycle for October would be 31/365 because there are 31 days in that month. Any values in this column such as 15/365 is a cash flow that came in mid quarter/month.
Fee Schedule: This column shows your fee schedule that is assigned to the account.
Rep: This column shows your portion of the fee. The sum of the Rep and Rep Adj columns is the portion of fees that you will receive.
Rep Adj: This column shows your portion of the Adjustments amount. The sum of the Rep and Rep Adj columns is the portion of fees that you will receive.
Common Questions
Why are there accounts showing on multiple rows?
There are a few reasons that an account can be on multiple rows in the Payable Summary.
The first reason is that the account is being billed on a tiered schedule and the account value reaches multiple tiers. Each tier will have its own row. For example, if your billing tiers are:
- $0-$500,000 charged at 1%
- $500,001 - $2,000,000 charged at 0.75%
- $2,000,001+ charged at 0.5%
If the account balance is $1,000,000 it will appear on two rows with the first $500,000 charged at 1% and the remaining $500,000 charged at 0.75%
Another reason that an account can have multiple rows on the Payable Summary is due to mid month/quarter cash flows. Use the Days in Cycle column to review any cash flows.
What do the Contribution and Distribution fields mean in the Pay Method column?
These rows show money that is moving in/out of the account mid month/quarter. Orion will automatically mark the transactions as cash flows and include them in the account’s billing in order to bill as accurately as possible.
What is the billing calculation being used?
Billed Value x Fee Rate x Days in Cycle = Fee Amount