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| _Toc475955735 |
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| _Toc475955735 |
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Create/Edit Entity Panel Options - Cash Segregation Related Fields
The following are the options in the Create/Edit Entity panel and the Create Master Fund panel that apply to cash segregation.
Option | Tag | Description |
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| _Toc475955736 |
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| _Toc475955736 |
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| Core Accounting Fields |
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Auto Settle Indicator | 58 | Indicates whether the system settles trades, coupons, and miscellaneous income and expenses automatically. Options include:- No. Default. The system does not automatically settle trades, coupons, and miscellaneous income and expenses. You must schedule the settlement for these transactions using the Run Contract Cash panel. Or, manually settle the transactions using the Run Multiple Settlements panel. If you use cash segregation based on actual cash settlements, you can schedule settlements using the Run Cash Auto Match panel and create settlements manually using Cash Matching. Eagle recommends that you set this field to No.
- Yes. The system automatically settles trades, coupons, and miscellaneous income and expenses. If you enter Yes, the system creates a settlement as soon as the trade is processed. There is no trade to settle date gain/loss. This applies even if the settlement date is in the future.
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Segregate Derivatives | 16253 | Indicates whether the system segregates derivative positions by clearing broker . If the entity has a custody basis for use with cash segregation, the system must segregate derivatives on the non custody basis because cost is notional and the system determines cash based on the lot closedfor the entity. Otherwise, If you do not use cash segregation for the entity, you can segregate derivatives in order to allow the system to process derivatives with multiple brokers. Options include: - Yes. Eagle Accounting segregates derivatives. If you set the Position Cash Segregation Basis Indicator field to Yes, indicating that you use cash segregation and the entity has a custody accounting basis, the system sets the Segregate Derivatives field to Yes. You can also select Yes to allow processing derivatives with multiple brokers. The system must additionally segregate derivatives on the non custody basis because cost is notional and the system determines cash based on the lot closed.
- No. Default. Eagle Accounting does not segregate derivatives.
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| _Toc475955737 |
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| _Toc475955737 |
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| Cash Segregation Fields |
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Position Cash Segregation Basis Indicator | 11675 | Indicates whether to create a custody basis for the entity for use in cash segregation. Options include:- Yes. The system creates a custody basis for the entity. When you submit the entity, the system creates an entity record, a record for the entity's primary accounting basis, a record for the custody accounting basis, and accounting periods for both the entity/primary accounting basis and the entity/custody accounting basis. The system assigns the appropriate default settings for the custody basis. For example, a custody basis does not require income, amortization/accretion, or ledger processing. If you select a value of Yes, the system also sets the Segregate Derivatives field to Yes.
- No. The system does not create a custody basis for the entity. If you set the entity-level Cash Sweep option to Yes, this option displays a value of No and is locked.
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Custody Basis | 7004 | Specifies the name of the non primary accounting basis to add as a custody basis for use in cash segregation. The default value is CUST. This field appears if you set the Position Cash Segregation Basis Indicator field to a value of Yes. Tag 7004 is a work tag and is not stored. |
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| _Toc475955738 |
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| _Toc475955738 |
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| Settlement Fields |
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Cash Suspense Processing | 3950 | Indicates whether the system performs cash suspense processing. Cash suspense processing is started when the system attempts to settle transactions that do not match (the system cannot find a receivable or payable to settle). Options include:- Yes. The system performs cash suspense processing. If the transaction is not found, it posts an entry to the cash suspense account. If you select Yes, the Replay Suspense Activity field becomes available.
- No. The system does not perform cash suspense processing. It flags the unmatched transactions as errors and sends them to the Exceptions workspace for review.
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Replay Suspense Activity | 12074 | Specifies whether to activate the process that matches up a trade cancellation with the settlement, reverses the settlement, and replays the matching process. If there is no match, the item is posted into suspense. This can also apply to corporate actions. This field appears when you set Cash Suspense Processing to Yes and is required under that circumstance. Options include:- Yes. Default. The system activates the process that matches up a trade cancellation with the settlement, reverses the settlement, and replays the matching process. If there is no match, the item is posted into suspense.
- No. The system does not activate the process that matches up a trade cancellation with the settlement, reverses the settlement, and replays the matching process. When you use cash segregation and have a transaction cancelled, the traded cash and linked settled cash are cancelled.
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Cash Breakage Election | 12071 | Indicates whether breakage activity is posted to the income account (3009000200) or both the principal account (4002000300) and income account. Options include Income (Default) and Both Principal and Income. |
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| _Toc475955739 |
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| _Toc475955739 |
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Add a Custody Accounting Basis
In the Add a Basis to a Portfolio panel, you can add a custody basis to an existing entity or a master fund. To use cash segregation, you must create a custody accounting basis (custody basis) for each entity eligible for cash segregation processing. A custody basis is an accounting basis that has the Position Cash Segregation field set to a value of Yes. By default it has a name of CUST. An entity can have only one custody basis. You typically assign a non primary, non controlling accounting basis as the custody basis. You must add the custody basis before you begin to process transactions for that entity.
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You cannot add a custody basis for an entity that has holdings at this time. |
To manually add a custody basis to an existing entity or master fund:
- Do one of the following:
- In Accounting Center, in the left navigation pane, click Setup > Portfolio Setup > Accounting Basis > Add a Basis to a Portfolio.
- In Portfolio Data Center, in the left navigation pane, click Portfolio Desk > Accounting Portfolio Setup > Accounting Basis > Add a Basis to a Portfolio.
You see the Add a Basis to a Portfolio panel. - Click the Entity ID or Entity Name field and enter the entity for which you are adding an accounting basis.
- Click the Accounting Basis field and select the value you use to identify a custody basis.
For example, CUST. - Click the Position Cash Segregation Basis Indicator field and select Yes.
A value of Yes indicates this accounting basis is the custody basis used for cash segregation processing. After you select Yes, the system assigns the appropriate default settings for the custody basis. For example, a custody basis does not require income, amortization/accretion, or ledger processing. - Complete the remaining options on the panel.
- Click Submit.
Add an accounting period for the new accounting basis.
When you create a custody (CUST) accounting basis, the system assigns the basis the following default values.
Option | Tag | Description |
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| _Toc475955740 |
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| _Toc475955740 |
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| Null Default Values |
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Controlling Basis | 4949 |
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Regulatory Category | 12387 |
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Regulatory Category Effective Date | 9371 |
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Ledger Granularity Rule Name | 8939 |
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Ledger Granularity Rule Effective Date | 155 |
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Cost Basis Covered Indicator | 2818 |
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Book Value Breakdown Flag | 2904 |
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| _Toc475955741 |
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| _Toc475955741 |
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| N (No) Default Values |
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Primary Basis Indicator | 8130 |
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Bifurcation Method | 5825 |
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Ledger Processing | 8128 |
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Mixed Cost Basis Indicator | 11664 |
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Cost Cash Processing | 5006 |
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| _Toc475955742 |
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| _Toc475955742 |
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| Y (Yes) Default Values |
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Wash Sale Inhibit Indicator | 775 |
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Cash Processing | 8125 |
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Unrealized Gain/Loss Indicator | 5383 |
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Gain/Loss on Paydowns | 1871 |
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Call Redemption Gain/ Loss Indicator | 8916 |
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Sink Fund Gain Loss Flag | 9923 |
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Short Term Discount Accrual | 8919 |
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| _Toc475955743 |
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| _Toc475955743 |
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| Other Default Values |
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Cost Method | 22 | Default value of I (Identified). |
Lot Selection Method | 27 | Default value of FIFO (First In First Out). |
Cost Method Cash | 9924 | Default value of I (Identified). |
Accounting Basis Lot Selection Rule | 7102 | Default value of A (Always Use Basis Value). |
Accounting Period Frequency | 624 | Default value of D (Daily). |
Primary Amortization/Accretion Rule | 3197 | Default value of DEFAULTNONE. |
Primary Amortization/Accretion Rule Instance | 4622 | Default value of 17. |
Secondary Basis Replication Rule | 7249 | Default value of R (Replicate All Events). |
Secondary Basis Replication Rule Instance | 10560 | Default value of 0. |
Postmatrix Type | 11708 | Default value of CORE (Core). |
Principal Loss on Paydown Processing Flag | 2925 | Default value of G (Realized Gain/Loss). |
Coupon Cash Entitlement Level | 11852 | Default value of Position Level. |
Cash Div Cash Entitlement Level | 9922 | Default value of Position. |
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| _Toc475955744 |
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| _Toc475955744 |
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| Values That You Can Set |
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Accounting Basis code | 21 | Eagle recommends that you use CUST as the custody basis. |
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| _Toc475955745 |
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| _Toc475955745 |
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Create Composites for Cash Segregation
When you use cash segregation, you can create a set of rules for either an entity or for a group of entities to link together a transaction with the appropriate cash account at a custody location. If the rules apply to a group of entities, you can create a composite to group together the entities.
To create a composite for use with cash segregation:
- Do one of the following:
- In Accounting Center, in the left navigation pane, click Setup > Portfolio Setup > Composites > Create Entity Composite.
- In Portfolio Data Center, in the left navigation pane, click Portfolio Desk > Accounting Portfolio Setup > Composites > Create Entity Composite.
You see the Create Entity Composite panel. - Click the Entity Type field and select Composite.
A composite, which has an entity type of COMP, is comprised of multiple underlying entities each having the entity type of Portfolio (PORT). - Click the Accounting Basis field and enter the value you use to identify a custody accounting basis.
For example, CUST. - Enter the values for the remaining field on the panel.
- Click Submit.
You can then use the Add Entity to Composite panel to associate a group of portfolios with the composite you created. - Ensure that each portfolio that is a member of the composite includes a custody accounting basis that has the Position Cash Segregation Basis Indicator field set to a value of Yes.
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| _Toc475955746 |
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| _Toc475955746 |
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Create a Default Entity for Unmatched Cash
When you set up each cash account used in cash matching, you can identify a default entity, called the Default Portfolio, to use for sweeping, or releasing, unmatched cash into accounting at the end of the day. The system applies settled cash to this entity as settled cash in a suspense state. You can identify or create the default entity or entities that you plan to use for this purpose.
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WRITERS NOTE: am I missing sectors here? |