Definition: Distributing shared business expenses across various departments, projects, or entities in order to ensures accurate financial reporting, cost tracking, and profitability analysis.
Example: An example of expense allocation would be a private fund spending $2 million on legal fees for an acquisition and then distributing the expense across three separate funds in varying percentages according to their relative size.
Explore the IVP NAV Solution
The IVP NAV Solution supports expense allocation rules governed by NAV calculations. It enables real-time NAV finalization for multiple funds with complete traceability for specific NAV components. It centralizes NAV oversight in one intuitive experience with automated exception identification and trend analysis, so asset managers can quickly and easily remediate NAV anomalies at the key component, share class, and security level.
