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Set Up Entities

You can set the Expiry Date Processing (tag 12877) option at the entity level to a value of Yes or No to indicate whether an entity or master fund allows you to process voluntary corporate actions based on expiration date. A definition follows.

For general information about setting up entities and master funds, see Create Entities and Manage Mutual Funds. Or see Create/Edit Entity Panel Options and Create Master Fund Panel Options.

Create a Corporate Action Announcement 

You can define the expiry date when you create a corporate action announcement. For general information about creating and modifying corporate action announcements, see Adding Corporate Action Announcements. 

A definition of the fields related to expiry date processing follows. The Expiry Date field is available on each corporate action announcement panel that is eligible for voluntary elections.

Add Voluntary Corporate Action Elections

You can specify at the voluntary corporate action election level whether the voluntary election for an entity uses expiry date processing. You can add a voluntary election for corporate actions in a Pending or a Released status.

When you add a voluntary corporate action election that you plan to process on expiry date, the Add Entity Election Detail panel shows the following related fields. If you want the voluntary election to use expiry date processing, ensure that the Expiry Date Processing field has a value of Yes, and that the Expiry Date field displays the expiry date specified for the corporate action announcement. For general information on about adding a voluntary corporate action election, see Add Voluntary Corporate Action Elections.

Modify a Corporate Action Announcement After the Expiry Date Changes

If the expiration date changes for a voluntary corporate action that has a Pending status, you can modify the Expiry Date field value for the corporate action announcement. You can use the Modify Corporate Action Announcement panel to edit the corporate action announcement.

However, if the expiration date changes for a voluntary corporate action that has a Released status, then you must cancel and rebook the corporate action to reflect the new expiration date. Or, you can create a second corporate action announcement with the new expiration date and then add new voluntary elections for those entities that did not previously elect to opt in on the corporate action. However, remember that Eagle Accounting allows only 1 voluntary election per entity per corporate action. 

If you use the Change Voluntary Corporate Action Election option to modify a voluntary election, and you set the Expiry Date Processing field to Yes, you no longer see the Elected Shares Percent (tag 1001) field, and you cannot specify a value for that field. 

After you identify the voluntary corporate action elections that use expiry date processing, you can use global processing for corporate actions as usual. When you use expiry date processing, expiration date +1 acts as the sweep date. 

In the corporate action global processing panels, when you define a Corporate Action Begin Sweep Date and a Corporate Action End Sweep Date, the system uses the voluntary corporate action's Expiry Date to determine the sweep date for voluntary corporate action elections that use expiry date processing. For corporate actions in a Released status, the system sweeps the corporate action on expiration date + 1 using the expiry date. 

Cancel and Rebook Corporate Actions After the Expiry Date Changes

If the expiration date changes for a voluntary corporate action that has a Released status, then you must cancel and rebook the corporate action announcement to reflect the new expiration date. You can use the Rebook Corporate Action option for that purpose.

In the following example, assume you are cancelling a corporate action in a scenario where one entity previously processed the corporate action and another entity did not yet process the corporate action. 

• For the entity that already processed the corporate action, after you add the cancel corporate action to Eagle Accounting, you then need to trigger it using the global query. For example, in Accounting Center's Global Processes, you can use the Cancel Global Corporate Action Announcements option. This query updates the entity, reverses ledger entries made, inserts cancel rows, and restores the Cost, Cash, and Income objects so that they no longer reflect the corporate action.
• For the entity that did not yet process the corporate action, you have no further tasks to perform. If you rebook the corporate action, then the entity needs to re-enter the voluntary election to reference the new corporate action record. The system links the old voluntary election to the cancelled corporate action record and does not trigger the processing of the new corporate action.

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Report on Expiry Date Processing

The Corporate Action Entitlement report allows you to show corporate actions processed based on expiration date +1. You can run the report for all entities that hold a particular security. You can set the report's Report Type option to Expiry Date +1 to include corporate actions associated with entities that can process voluntary corporate actions based on expiration date +1 during a period of one or more days. The report results include the Expiry Date +1, identying the expiration date of the voluntary corporate action election. They also show the entity's Expiry Date Processing setting.