How to Record Discretionary Portfolio Fees
Recording the quarterly fee earned from managing a client's investment portfolio where the bank has full investment authority.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Client Cash Account | Liability | 2,500.00 | - |
| Discretionary Management Revenue | Revenue | - | 2,500.00 |
💡 Accountant's Note
The bank debits the client's liability account (cash on deposit) and credits its own revenue account once the management service for the period is rendered.
Practitioner & Systems Framework
💻 ERP Architecture
Fee modules within the core banking system automate the debit from client sub-ledgers.
⚠️ Audit Flags
Discrepancies between average daily AUM and fee calculation basis in the investment mandate.
📄 Required Documentation
Discretionary Investment Management Agreement (DIMA) and periodic valuation reports.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.
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Discussion & Community Questions
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