You submit the CALC_SETRATE_DIST event through the Post Set Rate Distributions panel to calculate a daily set rate and post the distribution amount to the ledger. The following steps describes steps describe how Eagle's processing works when it calculates set rate distributions.
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- If the date falls within a non-distribution day schedule, but is not the end date of that distribution schedule, then the procedure quits. The procedure does not need to post anything on non-distribution days not equal to the end date.
- If the date falls within a non-distribution day schedule and is the end date of that schedule, then the Set Rate procedure calls the Expense Absorption procedure to calculate the expense absorption value to absorb in the next distribution period. For details, see . (See section 3.3 for details on Understand the Expense Absorption calculation)Process.
Step 4. Calculate Base Class Daily Distribution
The system calculates the distribution amount for the base class by taking the stored daily distribution rate (created through the Create Set Rate Distribution panel and multiplies it by the distribution shares (outstanding or settled based off the entity-level election) for the earn thru dates found by Step 2.
- If the earn thru date is not a business date, the procedure stales the distribution shares used in the calculation and uses the prior business day’s shares.
Earn Thru Example.
| Earn Thru Date | Daily Accounting Date | Business Day |
|---|---|---|
| 1/7/11 (Friday) | 1/7/11 | Yes |
| 1/8/11 (Saturday) | 1/7/11 | No |
| 1/9/11 (Sunday) | 1/7/11 | No |
In this example, distributions trigger on Friday 1/7/11 and the earn thru rule setup processes 1/7/11, 1/8/11, and 1/9/11(for weekend) on 1/7/11. Only 1/7/11 is a business day. To determine the distribution shares for 1/8/11 and 1/9/11, the system uses the 1/7/11 accounting date shares.
- Last Day of Distribution Period Exception. If you are on the last day of the distribution period, then the procedure checks to ensure that the base class daily distribution rates for the period sum to the total rate distribution for the period. If there is a difference (possibly due to rounding) then the system adjusts the final day rate by the difference.
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The system then checks the expense absorption table to see if the accounting date submitted falls within an absorption date range. (See section 3.3 for Expense Absorption calculations) For more information, see Understand the Expense Absorption Process. If so, the system adds the daily absorption value to the class specific expense differential.
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