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5.14.5
Authorizing Bank Reconciliation
To authorize reconciled and un-reconciled entries, choose the operation ‘Authorize’ and the
desired Reconcile Entry in the Bank Reconciliation Summary screen and enter the search
criteria.
When you click ‘Ok’ button, records satisfying the search criteria that you have entered are
displayed.
Check the option ‘Select’ against the entry which you wish to authorize. While authorizing the
reconciled records you can specify the payment action the system should perform. The
options are:

Clear – If you choose this option, system will confirm the units

Reject – If you choose this option, system will pass a reversal to the original transaction

No Action - If you do not specify any payment action here, system will not take any
action. The entry will be reconciled. The transaction will neither be cleared nor rejected
irrespective of the cheque status.
If the status of the cheque in bank feed is ‘Debit Received’, ‘Reject Status Awaited’ or
‘Rejected’, then you can select the option ‘Reject’. If the status of the cheque in the bank feed
is ‘Credit Received’, you will be allowed to select the ‘Clear’ action.
5.15 Computing Performance Fee for Hedge Funds
Hedge fund managers charge the investors a fee called performance fee, which is a
percentage of the gains received by the investor. As investors enter and exit hedge funds at
different points in time, the performance gains received by them also differ accordingly.
Hence, the performance fee calculations are carried out using a special accounting
methodology called equalization accounting which ensures that the fund manager is paid the
correct performance fee and also that the fees are fairly allocated between each investor in
the fund. The investors also receive profit only for the period during which they stay invested
in the fund.
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