This article covers issues to consider if an organization is planning on changing its' posting frequency in Fundriver.
- Unitization: A change in posting frequency will impact the timing of the investment earnings allocation on new gifts. Below are the two most common unitization models in Fundriver.
Beginning of the month 2 (BOM2): New gifts receive units based on the unit price from the prior month end. Investment earnings are allocated based on the new unit balance after gifts are unitized. The important distinction is that gifts receive an earnings allocation in the same posting period.
End of Month (EOM): Earnings are allocated based on the prior month-end unit balance. New gifts receive units based on the new unit price at the end of the current posting period. The important distinction is new gifts receive an earnings allocation in the subsequent posting period.
- Gifts, Distributions, Transfers and expense transactions entered to individual funds impact units
- All other activity (interest/dividends, realized and unrealized gains/losses and investment fees) impact unit price
Locked Periods: all prior periods will be locked down for editing once the posting frequency change is made. Therefore you will be unable to open prior periods from the lock date.