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Before you can process transactions that use cash segregation, you must set up Eagle's Accounting solution for use with cash segregation.

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  • Interest on Cash Balances. Accrues interest on cash balances. It allows you to link an interest bearing asset (PST of CRINTC) to a cash account to accrue income and drop coupon payments on the cash balance.This method does not physically move the cash balance. The system creates a cash balance accrual position in the Cost object that has quantity but zero cost, and is not priced. The system processes accruals against the cash balance accrual position. See Set Up Cash Balance Accruals for more information.
     
  • Cash Account Level Cash Sweeps. Setup for cash sweeps occurs at the cash account level. Each individual cash account associated with an entity has the ability to sweep and can have different processing parameters. For each cash account you sweep, you define the sweep instrument along with the minimum balance to sweep. The cash sweep process then sweeps individual cash balances into custody level holdings where they accrue interest if the STIF instrument is an interest bearing asset. The system maintains principal and income balances throughout the cash sweep process. With this method, you sweep the segregated cash balance from a cash account into a sweep asset for a Money Market or other interest bearing account (PST of DBSTST or EQEQMF). See Manage Cash Sweeps for Cash Segregation for more information.

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The bank alias, tag 16, is the instance number of the entity bank relationship that links the entity or entity group for the transaction to their assigned custodian bank code and custody bank account number. The system tries to assign a missing cash account using the following matching steps. If it meets the criteria it applies the cash account; otherwise, it continues to the next step.  

Match Step

Cash Account Type (tag 62)

Cash Event Type (tag 53)

Security Type (tag 82)

L/S Indicator (tag 15)

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 For For example, say the system cannot identify a cash account relationship for the transaction's bank alias that exactly matches the transaction's values for cash account type (Default, Income, Margin, Reclaim, Trade), cash event type (Disbursement, Receipt), security type, and long/short indicator, so the first match step does not succeed.

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