There are two places for Enterprise Fund clients to add Management Fees and for different reasons, as explained below:
- Portfolio Management / Transactions tab (also via the Add New...Transaction button on the sidebar) - This approach is used when the Fund pays money to the fund manager out of cash the Fund has on hand. The cash is allocated from the capital committed on a pro rata basis, visible in Fund Management. These Management Fees can also be viewed / edited in the Transaction Register.
- Fund Management / Investor Transactions tab - This approach is used when LPs pay management fees in addition to committed capital.
The economic results are similar, but the accounting is different for these two methods.