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In order to calculate theoretical distribution yields, you must select an NII distribution rule that defines the ledger account ranges to use. The NII distribution rule identifies the ledger accounts that the system uses to calculate the distributable income used in the calculation of the yield and mil rate for each method. This allows you to calculate multiple theoretical daily mil rates and yields for a fund and share class, regardless of the distribution and NII rule applied at the entity level. This process does not post to the ledger or any associated subledger tables and thus has no accounting impact in Eagle Accounting. You must run this process separately for each applicable NII rule you want to use. You can use this panel manually on an ad hoc basis or can use it to schedule a profile to run using Automation Center's Schedules.
The theoretical yield calculations uses the entity's Distribution Shares method. Distribution adjustments do not apply to theoretical mil rates and yields. NII entity level elections such as distribution absorption method (yield to minimum) and NII split method do not apply to theoretical yield calculations.
To calculate theoretical distribution:
- In Accounting Center, in the left navigation pane, click Fund Accounting > Distributions > Net Investment Income > Calculate Theoretical Distribution.
You see the Calculate Theoretical Distribution panel. - In the Entity ID and Entity Name fields, specify the unqiue identifier or name of the entity.
- In the Portfolio Currency field, specify the base currency in which the account is valued.
- In the Accounting Date field, specify the accounting date.
- In the Net Investment Income Profile field, select the NII distribution rule that defines the ledger accounts to use for calculating the theoretical distribution yield.
- Click Submit.