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After you set up an amortization rule, you can choose that rule in the Primary Amortization/Accretion Rule field for any entities you create.

HighlightWRITERS NOTE: add links to entity panels in Acct Center space

Define an Amortization Rule When You Create a New Entity

When you use the Create/Edit Entity (or Create Master Fund) panel to add an entity, you can identify the amortization rule to use with that entity. 

After you create an accounting rule and related amortization rule, you can assign the accounting and amortization rule to the entity in the Primary Amortization/Accretion Rule field (tag 3197). The Primary Amortization/Accretion Rule field is located in the Earnings/Amortization Fields area of the panel. Be aware that the amortization rule created in the entity is also created in the entity's primary accounting basis. 

The Primary Amortization/Accretion Rule field for the entity drives the calculation of yields on the trade panel.


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Change the Amortization Rule for an Entity

When you change the amortization rule on an existing entity, Eagle Accounting also changes the amortization rule on the entity's primary accounting basis. However, if you change the amortization rule on the primary accounting basis, Eagle Accounting does not update the value on the related entity record. 

Therefore, if you want to change the value of the amortization rule on the primary accounting basis, do so by changing the amortization rule at the entity level. If there is a disconnect between these two fields, there can possibly be an incorrect trade yield result when Eagle Accounting does the calculation. If there is a change to the Entity Record/Primary Accounting Basis field, Eagle Accounting recalculates the amortization retrospectively from settlement date.

Define an Amortization Rule When You Create an Accounting Basis

Eagle Accounting allows you to create multiple accounting bases (multiple books). You can apply a different amortization rule for each basis. When earnings are invoked, Eagle Accounting looks to the amortization rules when processing amortization and yield calculations. 

When you use the Add a Basis to a Portfolio panel to add an additional accounting basis for an entity or master fund, you can enter a value for the Primary Amortization/Accretion Rule field (tag 3197). This field is located in the Core Accounting Fields area.

Change the Amortization Rule on an Accounting Basis

When you use the Edit a Basis on a Portfolio panel to change an additional accounting basis for an entity or master fund, you can change a value for the Primary Amortization/Accretion Rule field (tag 3197). This field is located in the Core Accounting Fields area.

Be aware that if you change the amortization rule on the primary accounting basis, Eagle Accounting does not update the value on the entity record. Therefore, if you want to change the value of the amortization on the primary accounting basis, do so using the Create/Edit Entity panel or the Edit Master Fund/Sector panel. If there is a disconnect between the entity and primary accounting basis for the primary amortization rule, there could possibly be an incorrect trade yield result when Eagle Accounting calculates the yield.

When changing the amortization rule on an accounting basis, Eagle Accounting recalculates the yield and amortization based on the new amortization rule, and recalculates the amortization retrospectively, from the settlement date of the tax lot.