Eagle Accounting allows you to use custom sink schedules rather than sink schedules with sinking fund securities in cases where you need the ability cancel and correct sink payments for securities for which the payment differs from what is expected. Custom sink schedules allow you to address a scenario which can occur for private placements where the actual sinking fund payments often differ from the expected sinking fund payments based on predefined schedule data, and you need to process the revised sink payments easily.
Custom sink schedules allow you to bypass the restriction on sink payment corporate action records where the total of the sink payments for a given security must be equal to 1 (100%). The assumption when you bypass this restriction is that you will update any associated schedule or corporate action data accordingly in order to reflect the unexpected amount received, but will do this subsequent to the processing of the cancel and correction of the current payment.
Using custom sink schedules allows you to process revised sink payments by modifying the data in the TRADESDBO.CORP_ACT_HIST table without needing to modify the RULESDBO.SCHEDULE data for the purpose of accounting for unexpected differences in cash that are received. The expectation is that you will eventually modify the sink schedule data in both tables to reflect the impact of the unexpected cash difference (surplus or deficit) on future payments. If you do not maintain the schedule data appropriately, you can encounter unexpected gains/losses on sink payments due to amortization differences that occur as a result of incorrect yields being used going forward.
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