Versions Compared

Old Version 16

changes.mady.by.user Nancy Cohn (Deactivated)

Saved on

compared with

New Version 17

changes.mady.by.user Nancy Cohn (Deactivated)

Saved on

Key

  • This line was added.
  • This line was removed.
  • Formatting was changed.

In the Equity/Mutual Fund panel, you can manually book an open (buy or short sell) and close (sell or buy to cover) trade for basic mutual funds and mutual funds that distribute income daily.

Note

This article assumes you are familiar with the entity and security level elections that have been made for processing a mutual fund security.

Book Open Trades for Mutual Funds

To manually book an open trade for a mutual fund:

  1. In Accounting Center, in the left navigation pane, click Transactions > Trades > Book Trade/Rebook Trade > Book Trade. 
    You see the Book Trade workspace.
  2. Complete the options in the Search Details pane and click Search.
    You see the search results based on the criteria you selected.
  3. Select the row with the security you want to trade.
  4. On the Book Trade tab, in the Actions group, click Action Rules, point to Open, and then click Buy or Short Sell.
    You see the Open Equity/Mutual Fund panel.
  5. Complete the options on the Open Equity/Mutual Fund panel.
  6. Click Submit.
    Once the trade is booked, it follows all core accounting processes.


Panel
borderColor#9F9F9F
titleColor#F7F9F9
titleBGColor#B48436
borderStyledashed
titleContent on this page:

Table of Contents
maxLevel1
indent2 px


Open Equity/Mutual Fund Panel Options

The following are the key options in the Open Equity/Mutual Fund panel. Note options may vary according to your selections.

OptionTagDescription
Entity Information

Entity ID1163Specifies the unique identifier of the entity.
Entity Name1164Specifies the name of the entity.
Base Currency86Displays the base currency of the entity.
Issue Information

Trade Date35Specifies the effective date of the trade. The trade date cannot be greater than the post date, accounting date, or settlement date.
Accounting Date36Specifies the date the trade is reported and has an effect on the entity's holdings and cash balances. The accounting date must be greater than the trade date.
Monthly Accounting Date4733Displays the month end accounting date.
Settlement Date37Specifies the date the trade is settled.
Event Type55Specifies the business intent of the transaction.
Long/Short Indicator15Displays an L (long) or S (short) to indicate whether the position is long or short.
Cross Reference Type1234Specifies the cross reference type associated with the security.
Issue Name961Specifies the name of the security.
Ticker13Specifies the trade ticker of the security.
Cross Reference ID1233Specifies the cross reference identifier associated with the security.
Instrument Type11Displays the instrument type.
Security Type82Displays the security type of the asset.
Issue Currency85Displays the local currency of the security.
Accounting Information

Shares40Specifies the traded quantity of the security. The value must be greater than zero.
Price Per Share45Specifies the trade price per share. The value must be greater than zero.
Principal165Displays the principal amount based on the following formula: (Current Shares * Quantity Scale) * (Price * Price Factor)). This product is rounded to the local currency precision.
Implied Commission Indicator78Indicates if commission is included in the price. Options include No and Yes.
Commission47Specifies the amount of the trade commission.
SEC Fee48Specifies the SEC fee. The system calculates the SEC fee if certain criteria is met.
Tax Amount46Specifies the tax amount on the transaction.
Stamp Duty Tax51Specifies the stamp duty amount on the transaction.
Other Fee3752Specifies any additional fees on the transaction.
Local Net Amount50Displays the net amount of the trade based on the following formula: Principle + Fees.
Settlement Currency63Specifies the currency in which the trade is settled.
Settlement Net Amount64Displays the actual settled amount of the trade. The value must be greater than zero.
Local to Base FX Rate87Displays the foreign exchange rate used to calculate the net base amount. The value must be greater than zero.
Base Net Amount478Displays the base amount of the trade. This amount is calculated based on the following formula: Local Net Amount / Local to Base FX Rate. The value must be greater than zero.
Settlement Information

Auto Settle Trade Indicator58Indicates whether the system settles the trade, coupon, and miscellaneous income and expenses automatically. If the entity's Auto Settle Indicator field is set to Yes, as specified on the Create/Edit Entity or Create Master Fund panels, the system creates a settlement when the trade is processed. There is no trade to settle date gain/loss. This applies even if the settlement date is in the future. Eagle recommends that you set the Auto Settle Indicator field to No for the entity and trade panels. Options include:
  • Yes. The system automatically settles the trade, coupon, and miscellaneous income and expenses. The system retrieves the settle date FX rate if the local currency does not equal base and generates a trade to settle date gain/loss.
  • No. Default. The system does not automatically settle the trade, coupon, and miscellaneous income and expenses. You must schedule the settlement for these transactions using the Run Contract Cash global 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. 
Broker Name1235Specifies the name of the primary broker.
Broker Code88Specifies the code that represents the broker.
Clearing Broker1236Specifies the name of the clearing broker, if different from the trade broker.
Clearing Broker Code1237Specifies the code for the clearing broker.
Custodian Bank Name1146

Specifies the name of the custodian bank responsible for the trade. The field lookup allows you to select the custodians that have bank account relationships defined for the entity or for the composite associated with the entity. When you select a value, the system displays values for the Custody Bank Account Number field, Custody Bank Subaccount field, Cash Account Name field and Cash Account Number field, based on the bank account relationships and cash account relationships that apply to the transaction.

NOTE: You must establish a relationship between the custodian bank and your entity prior to booking the trade.

Custodian Bank Code1240Specifies the code of the custodian bank.
Custody Bank Account Number1660Specifies the custodian bank primary account number. The panel displays the value associated with the selected bank account relationship for the custodian.
Custody Bank Subaccount1661Displays the custodian bank subaccount number. When you use cash segregation, the panel displays a value of OTHER as the custodian bank subaccount number for the transaction.
Cash Account Name 11696Specifies the name of the cash account for the custodian. If you use cash segregation, you hold the cash for the trade in this account for the custody basis. The system displays a cash account name based on the cash account relationships that apply to the transaction, but you can override it. It selects the cash account relationship for the transaction based on the transaction's cash account type, currency, and long/short indicator. The lookup displays valid cash account relationships that apply to the transaction. 
Cash Account Number11697Specifies  the account number of the cash account for the custodian. If you use cash segregation, you hold the cash for the trade in this account for the custody basis. The system displays a cash account number based on the cash account relationships that apply to the transaction, but you can override it. It selects the cash account relationship for the transaction based on the transaction's cash account type, currency, and long/short indicator. The lookup displays valid cash account relationships that apply to the transaction. 
Settle Instructions 11897Allows you to add settlement notes.
Settle Instructions 21898Allows you to add settlement notes.
Settle Instructions 31899 Allows you to add settlement notes.
Settle Instructions 41900 Allows you to add settlement notes.
Settle Location43Specifies the location in which the trade is settled.
Exchange Name2291Specifies the marketplace in which the security is traded. It is also used with global tax withholding and tax reclaim processing.
Exchange Code17Specifies the code of the marketplace in which the security is traded.
Other Information

Transaction Notes56Contains user defined information about the trade.
Original Trade Ticket Number761Contains the trade ticket identification number. The system uses it during processing. For example, IDLOT close or cancel events use this number to locate an open lot.
FAS 115 Code3728Specifies the FAS (Financial Accounting Standards) 115 Code, which is used to report assets. The real cash flow is the same regardless of accounting method. However, financial statements can be very different depending on which method is used. Options include:
  • Trading. Assets are acquired to earn a short term trading profit from market movements. The accounting method is market value.
  • Available for Sale. Assets are not planned to be held until maturity and may be sold. The accounting method is market value.
  • Held to Maturity. Assets are planned to be held until maturity. The accounting method is amortized cost. You cannot select this option for a common stock or open end mutual fund.
Holding Term9091Specifies the holding term for the trade based on the number of days between the original acquisition date (tag 216) and the maturity date (tag 35) on the lot. If you use ledger reporting based on ledger granularity rules to break out accounts by holding term, the system uses this value to identify the holding term for trades related to bonds and preferred stocks. Eagle Accounting's core transaction processing calculates the holding term for you, but you can manually override the value displayed in this field. Eagle Insurance clients that use ledger granularity rules have the system calculate the holding term based on the schedule associated with a lot. Options include:
  • Short Term. Identifies a short term holding. If the Holding Term Method field (tag 11479) in the trade's accounting basis has a value of 90 days, a short term holding term is 91 days to a year. If the Holding Term Method field has a value of 3 months, a short term holding term is 3 full months to a year.
  • Cash Equivalent. Identifies a cash equivalent holding. If the Holding Term Method field (tag 11479) in the trade's accounting basis has a value of 90 days, a cash equivalent holding term is 90 days or less. If the Holding Term Method field has a value of 3 months, a cash equivalent holding term is 3 full months or less.
Regulatory Intent8915If you now hold the trade in an entity/accounting basis with the new International Financial Reporting Standards (IFRS) regulatory category of Fair Value Profit Loss (FVPL) but previously held the trade in an entity/accounting basis with the old regulatory category of Fair Value Option (FVO) or Held for Trading (HFT), you can identify the old regulatory category specified for the trade at the entity/accounting basis level. You can specify a value for reporting purposes only. Options include:
  • Fair Value Option. Indicates the trade was previously held in a regulatory category of Fair Value Option, used for instruments managed on a fair value basis.
  • Held for Trading. Indicates the trade was previously held in a regulatory category of Held for Trading, used for instruments held with the intent of selling them.
Pending Trade Flag3695Specifies whether the trade is eligible for pending trade processing prior to processing by the STAR accounting engine. If you use pending trade processing, the system can assign this value to incoming transactions that meet flagged position pending trade rule detail criteria. Or an incoming transaction can include this value. This field is hidden. Options include Y and N.
Pending Trade Status3720Specifies the trade's transaction status for pending trade processing prior to processing by the STAR accounting engine. If you use pending trade processing, the system can assign a value of Pending to incoming transactions that meet flagged position meet pending trade rule detail criteria. Or an incoming transaction can include a value of Pending or a custom pending transaction status value defined in the PEND_TRD_STATUS code category. The default status is Pending if no status is provided. This field is hidden.
User Defined Priority2862Specifies the user generated number that determines the event sub priority. That is, after the system accounts for the event sequence and corporate action sequence.
Order Number1092Specifies the order number of the transaction. This can be the same for multiple lots.

Book Close Trades for Mutual Funds

To manually book a close trade for a mutual fund:

  1. In Accounting Center, in the left navigation pane, click Transactions > Trades > Book Trade/Rebook Trade > Book Trade. 
    You see the Book Trade workspace.
  2. Complete the options in the Search Details pane and click Search.
    You see the search results based on the criteria you selected.
  3. Select the row with the security you want to trade.
  4. On the Book Trade tab, in the Actions group, click Action Rules, point to Close, and then click Sell or Buy to Cover.
    You see the Close Equity/Mutual Fund panel.
  5. Complete the options on the Close Equity/Mutual Fund panel.
  6. Click Submit.

Close Equity/Mutual Fund Panel Options

The following are the unique options in the Close Equity/Mutual Fund panel. See the Open Equity/Mutual Fund Panel Options section for more information about other options. Note options may vary according to your selections.

OptionTagDescription
Accounting Information

Position Shares122Displays the current quantity of the position.
Lot Selection Method27Specifies the lot selection method that the system uses to relieve (sell) lots of a security held by the entity. Options include:
  • First In First Out (FIFO). Lots acquired first are sold first. The oldest lot is sold first based on the holding date. If you set the accounting basis Cost Basis Covered Indicator field (tag 2818) to Y, unknown cost lots are relieved first. The oldest cost lot is sold first based on the holding date.
  • Last In First Out (LIFO). Lots acquired last are sold first. The most recent lot is sold first based on the holding date. If multiple lots share the same holding date, the lot with the greatest event sequence is relieved first. The event sequence, set internally by the system, indicates the processing order of transactions within the same position.
  • High Amortized Cost or High Cost (HCLOT). The lots with the highest current cost are sold first. The system uses current unit cost, which includes amortization for debt securities. This method relieves the lots that can generate the maximum loss or the minimal gain.
  • Low Amortized Cost or Low Cost (LCLOT). The lots with the lowest current cost are sold first. The system uses current unit cost, which includes amortization for debt securities. This method relieves the lots that can generate the minimal loss or the maximum gain.
  • High Original Cost (HORIG). The lots with the highest original cost are sold first. The system uses the original unit base cost of the open lots. It relieves the lots that can generate the maximum loss or the minimal gain.
  • Low Original Cost (LORIG). The lots with the lowest original cost are sold first. The system uses the original unit base cost of the open lots. It relieves the lots that can generate the minimal loss or the maximum gain.
  • Identified Lot (IDLOT). The specified lot or lots are sold first, which determines cost and tax implications. You can optimize this option to specific tax situations by selecting the specific lots to be sold. If you select this method, the lower pane in the panel displays lot details for each available lot, as determined by the entity's controlling basis. If no controlling basis exists, it displays lots for the primary basis. You must specify the quantity for one or more lots that you want to relieve. The total quantity you specify for the open lots must match the quantity entered for the total close. The close trade relieves the selected lots in each of the entity's accounting bases, and keeps the lot structures in sync. The system uses the lot's Orig Event ID field (tag 457) to match a single open lot in one basis to corresponding multiple open lots in another basis, as needed. This can occur for lots fractured as a result of wash sale processing.
  • Best Tax. The lots are selected and sold with the objective of taking losses first (short term then long term) and gains last (long term then short term). Lots are sold in the following order:
  1. Short term Losses. Lots that reflect a short term loss are sold first, beginning with lots that generate the greatest short term loss down to the least short term loss.
  2. Long term Losses. Lots that reflect a long term loss are sold, beginning with lots that generate the greatest long term loss down to the least long term loss.
  3. Short term No Gains or Losses. Short term lots that reflect no gain or loss.
  4. Long term No Gains or Losses. Long term lots that reflect no gain or loss.
  5. Long Term Gains. Lots that reflect a long term gain, beginning with lots that generate the least long term gain up to the greatest long term gain.
  6. Short Term Gains. Lots that reflect a short term gain, beginning with lots that generate the least short term gain up to the greatest short term gain.
  • Tax Advantage (TXADV). The lots with the lowest tax liability are sold first to minimize tax liability.
  • Versus Purchases (VSP). The lots are selected and sold based on lot purchase characteristics, such as the target purchase date and the target purchase price. This option must be specified at the trade level.
  • Pro Rata. The lots are selected and sold based on a proportionate allocation.
  • Tax Efficiency. The lots with the lowest tax liability are sold first to minimize tax liability. The system calculates the tax liability based on the manipulation of entity level tax factors for long and short term gains, long and short term losses, and currency gains. The system also incorporates the wash sale disallowance effect and considers the overall tax implications of closing each individual lot.
  • Modified FIFO (MFIFO). The open lots with the same original acquisition date (tag 216) as the close transaction are sold first, starting with the lots with the lowest unit cost local. If there are no open lots with the same acquisition date as the close transaction, or all same day lots have been sold, the oldest open lots are sold first based on the acquisition date. Within a single acquisition date, the lots with the lowest unit cost local are sold first.