Sapphire Billing Overview, Timelines & FAQ

Overview:

Assets under management (AUM) fees are typically assessed through Orion and deducted from clients’ investment accounts on a monthly or quarterly basis. Prior to the end of each billing period, a preliminary (mock) bill is generated for advisor review, during which advisors may request adjustments if necessary. Following this review, fees are debited, and a final bill is produced detailing total fees collected and the advisor’s net payout. Advisor compensation is disbursed on the same billing schedule.

Financial planning fees are typically billed through AdvicePay, which allows clients to remit payment via bank account or credit card. Advisor compensation for these fees is distributed monthly based on invoices paid during the preceding month.

The payout statement, generated monthly, summarizes all revenue sources, expenses and shows the advisor’s final payout amount.

Timelines:

Orion Billing:

Approximately five business days before month or quarter-end

Mock bills are generated for review.

Approximately two to five business days after month or quarter-end

Fees are debited from investment accounts and final bills are generated.

Approximately ten business days after month or quarter-end

Payouts are deposited into your designated bank account.

AdvicePay Billing:

Approximately ten business days after month-end

Payouts are deposited into your designated bank account.

Payout Statement:

Approximately ten business days after month-end

Payout statements will be generated.

FAQ:

What is an Orion mock bill (aka Payable Summary)?

A mock bill is a preview of advisory fees before the official billing file is finalized and posted. It allows you to review projected fees and catch issues before generating client invoices.

What is an Orion final bill (aka Payable Summary)?

A final bill is the official, posted advisory fee calculation for a billing period. It is the version that is locked, approved, and ready for invoicing and fee debiting from client accounts.

Where do I access the Payable Summary?

Both the mock bill and final bill are called Payable Summary Report.

The report sent a few days before month/quarter end is your mock bill.
The report sent a few days after month/quarter end is your final bill.

Once your bill is ready, you’ll receive an email prompting you to log in to Orion to access the Payable Summary Report from your Secure Exchange inbox.

To retrieve the report:

Log in to Orion.
Open the Secure Exchange app from the left-hand menu or use the search bar in the upper-left to find it.
In Secure Exchange, open the email in your inbox.
Click the attachment link to view your bill.

What does a Payable Summary report look like?

Sample Payable Summary report

How to read the Payable Summary?

Pay Method: Shows how the fee for the account is collected. Direct is the most common method and the system default, meaning the fee is debited directly from the account at the custodian.
Billed Value: The account value used to calculate management fees.
Net Fees: Management fees for the billing period, calculated based on the account value and the agreed fee schedule.
Adjustments: Any credits or debits applied to the account’s management fee.
Net Due: The total management fee that will be deducted or invoiced for the billing cycle, including any adjustments.
Days in Cycle: The number of days the account is billed for during the period. Fees are prorated based on these days. The fee calculation is based on the exact number of days that occurred during that quarter or month. For example, if billing quarterly, the days in cycle for Q4 would be 92/365 because there are 92 days in that quarter. If billing monthly, the days in cycle for October would be 31/365 because there are 31 days in that month.
Fee Schedule: The rate at which the account is billed.
Pay Schedule: How the fee is allocated and paid out between Sapphire and the advisor.
Rep: The advisor’s portion of the management fee. Combined with Rep Adj, it reflects the total fee the advisor will receive.
Rep Adj: The advisor’s portion of any adjustments. Added to Rep to determine total advisor compensation.
RIA: Sapphire’s portion of the management fee. Combined with RIA Adj, it reflects the total fee Sapphire will receive.
RIA Adj: Sapphire’s portion of any adjustments. Added to RIA to determine total Sapphire compensation.

What are some common questions about the Payable Summary?

Why are there accounts listed on multiple rows?

One common reason is that the account is billed using a tiered fee schedule. If the account value spans multiple tiers, each tier is displayed on its own row.

Another reason is due to mid-month or mid-quarter cash flows. When deposits or withdrawals occur during the billing period, the fee is prorated based on how long those assets were in the account, which can result in separate rows.

What do the Contribution and Distribution fields mean in the Pay Method column?

These indicate deposits (contributions) or withdrawals (distributions) that occurred during the month or quarter. These transactions are automatically recognized as cash flows and are factored into the billing calculation, with fees prorated to reflect the length of time the assets were in or out of the account.

What is the billing calculation being used?

Billed Value x Fee Rate x Days in Cycle = Fee Amount

Why is my total billed value higher this billing period but the total net due is lower than the last billing period?

Fees are prorated based on the exact number of days in the period, rather than dividing the year into equal quarters or months.

For example:

o A 92-day quarter will be billed slightly more than 25% of the annual fee (about 25.2%) because 92 days is slightly more than 1/4 of the year.

o A 90-day quarter would be billed slightly less, at about 24.65% of the annual fee.

This can result in the billed value being higher, even if the net due is lower, depending on the number of days and any adjustments applied.

How do I audit Average Daily Balance?

Log in to Orion
From the left-hand menu, open the Query app.
Select Orion Queries.
In the right hand menu, under Query Lists, select All Queries
In the table under Query ID, type 21488.
Right-click the Average Daily Balance by an Account Rep and select Run Query.
Enter the Start Date, End Date, and Account Number.
Change the Run To option to Excel.
Click Run to generate the report.

What if I need to make changes after the mock bill has been generated?

After reviewing your mock bill, if you need to make any changes, please email the Support Team (support@xypnsapphire.com) before we run the final bill.

What if I need to make changes after the final bill has been generated?

Final bills cannot be modified; however, adjustments can typically be made in the next billing cycle, subject to approval. After reviewing your final bill, if you need any changes, please email the Support Team (support@xypnsapphire.com).

How do I get set up with an AdvicePay account?

AdvicePay is typically set up for you during onboarding. If you weren’t set up then, contact our Support Team (support@xypnsapphire.com), and we’ll help you get started.

How do I invoice in AdvicePay?

Here is a link on how to get your clients started on AdvicePay and issuing invoices:

Click here

If you prefer, you can also email our Support Team (support@xypnsapphire.com), the billing details, and we’ll take care of sending the invoice on your behalf.

What is the payout statement?

The payout statement summarizes all revenue sources, expenses and shows your final payout amount for the month.

What does a Payout Statement look like?

Sample payout statement

Where do I access the payout statement?

The payout statement will be generated monthly and saved in the Fee Billing folder in Box, where it will be available for your access.

How do I specify where my payout should be deposited?

Prior to your initial billing run, we will request that you complete a direct deposit form, which will be sent to you via DocuSign, to designate the account where your payout should be deposited. Should you need to make any updates, please contact the Support Team (support@xypnsapphire.com), and we will provide you with a new form to complete.

Why did an account not bill?

An account may not bill for a few common reasons:

Account is set to “Not Ready”

The account may be marked as Not Ready at the advisor’s request to temporarily hold off on billing or a restriction from Schwab may be present on the account, which can prevent billing from processing.

Account is set to “No Fee”

If there is no fee schedule or the fee amount is $0, the system will not generate a bill.

Account has no assets

If an account has no assets, no advisory fees will be charged.

What happens if a client leaves mid-cyle?

In Advance Billing

If an account is billed at the beginning of a month or quarter based on assets at that time, and the client or advisor chooses to terminate services before the end of that period, any unearned fees will be prorated and refunded to the client.

Example: If a quarterly fee is charged on January 1 and the termination date is on February 15, the client would receive a refund for approximately one and a half months of unused service.

In Arrears Billing

If an account is billed after the service period based on average or ending assets, the client will only be charged for the time services were actually provided. Fees are prorated up to the termination date, and no refund is necessary since fees are not paid in advance.

How are new accounts billed?

New accounts are typically billed on a prorated basis depending on when the account is opened and funded.

In Advance Billing:

Fees are calculated based on the account value when assets are first received and are prorated for the remainder of the billing period. Ongoing billing then follows the standard monthly or quarterly cycle.

In Arrears Billing:

Fees are accrued from the date the account is funded and billed at the end of the billing period, based only on the time the account was active.

What happens if I miss the mock bill review window?

If the review window is missed, we will not hold billing for confirmation during the mock billing phase and will proceed with generating final bills as scheduled.

How do I update my fee schedule?

To update a fee schedule, advisors can email our Support Team (support@xypnsapphire.com) with the proposed changes. Once received, the request will be routed to Compliance and Billing for review and approval before any updates are implemented.

How do I request fee adjustments or fee credits?

To request fee adjustments or fee credits, complete the following Client Fee Adjustment Form: Click Here

This form is for advisors to request a client fee waiver, refund, or other adjustment. Requests are reviewed internally to determine next steps based on documentation, compliance requirements, and platform policy.

Why is my AdvicePay payout lower than I expected?

Your payout may be lower than expected because only planning fees that have been paid and fully cleared are included in the payout. In addition, processing fees are deducted, which can reduce the total amount you receive.

Why are my planning fees not on this payout?

Only planning fees that have been paid and fully cleared are included in the payout.

What are AdvicePay’s processing fees and how are they structured?

AdvicePay processing fees vary by payment type:

Credit card transactions: 2.9% + $0.30 per transaction
ACH transactions: 1% per transaction (with a $0.30 minimum and $100 maximum)

You are responsible for 80% of the transaction fees, while Sapphire covers the remaining 20%.

Where can I see my billing history?

For Orion billing, review the payable summary reports shared with you through Secure Exchange in Orion. For AdvicePay billing, log into AdvicePay to view your billing history. For a comprehensive view, refer to your payout statements stored in the Fee Billing folder in Box.

How is the monthly Sapphire platform fee billed?

Platform fees will appear on your payout statement as an expense, but they are billed separately through Stripe rather than being deducted from your payout.

Where can I access my 1099?

Around the end of January in the following year, your 1099 form will be sent to you by email—possibly from a third-party provider—and a physical copy will also be mailed to you.