Page Comparison

Set Up Securities

When you establish the SMF, the following options apply to sinking fund securities that use sinking fund schedules or custom sinking fund schedules. For general information on using Reference Data Center to set up securities, see Create and Delete Securities. Otherwise, if you use Issue Viewer to set up securities, see Set Up Securities in Issue Viewer.

You can use the following options when you set up sinking fund securities for use with Eagle Accounting. 

Understand Custom Sinking Fund Schedules

WRITERS NOTE: new section 

When you define a custom sinking fund schedule in the Schedule table, the schedule is based on the percentage sunk. For example, if the Original Issue Amount was $1,000,000, and the Sinking Fund Percentage is .1%, the amount posted is $1,000. For a typical sinking fund schedule, the entire Sinking Fund schedule must have Schedule Amount values that add up to 1.00 (100%). For a custom sinking fund schedule, you can set up the schedule to avoid the requirement that Schedule Amount values total to 1.00. 

For example, say you create a custom sink schedule for a security such as private placement where you do not know the full schedule at the time you create the schedule. While you initially expect four equal payments of 25% each, the actual payments may vary. For example, the first payment you actually receive is 26%, and the second payment you actually receive is 24%. While the four payments total to 1.0 (100%) by the final payment, you do not necessarily know all the actual payment amounts until the security is paid in full, and totals to 1.0 (100%). To accommodate this scenario, Eagle Accounting allows you to define a custom sink schedule that does not require all the payments to total to 1.0 (100%). 

When you receive an actual payment that does not correspond to the expected payment, you can modify the custom sinking fund schedule to reflect the actual payment. In this example, while you expect a first payment of 25%, you actually receive a first payment of 26%. You can change the custom sinking fund schedule to change the first payment from 25% to 26%. The system allows you to make this change because the schedule does not require all the payments to total to 100%. It anticipates that the payments will total to 100% by the time you receive the actual final payment. 

As part of the calculation of amortization yield, Eagle Accounting sweeps the Schedule table to calculate future cash flows.

About Adding a Custom Sink Schedule

Adding a custom sink schedule is similar to adding a sink schedule .However, the value of the Bypass Sink Check field determines whether the schedule's schedule amounts can exceed 1.0, or 100%.

When you add the custom sink schedule, the add procedure can include a check that ensures that the sum of all the rows does not exceed 1.00 and if the primary key already exists. The system performs this check for custom sink schedules if you set the Bypass Sink Check field to a null value. The system does this check for both the Schedule and Corporate Action tables. If the check generates an error during the insertion into the Schedule table, nothing is inserted into either table. If, however, the errors occur during the insertion into the Corporate Action table, the system rolls back the insert to the Schedule table, and inserts no rows into either table. As long as the check passes on both tables, the data is inserted successfully. If you set the Bypass Sink Check field to Yes, the system does not perform this check, and allows the schedule's schedule amounts to exceed 1.0, or 100%.

While writing data to the Corporate Action table, if a row does not exist, the system inserts a new row. If a row already exists for the Sec Alias and Effective Date, and the schedule amount has not changed, no update takes place. If the schedule amount is different, the system calls the Corporate Action Cancel/Rebook procedure. As a result, the system updates the Status for the original row to CL; it inserts a new row, and it also inserts a CANCEL record for the original row. Both are set with a Status of RD. The CANCEL record has a Sweep Date set to sys date. As for the new corporate action record, if Effective Date of the original record <= sys date, the Sweep Date is set to sys date; otherwise, Sweep Date = Effective Date.

About Editing a Custom Sink Schedule

During the update, if the primary keys do not exist, the update procedure generates an error message. If the schedule has the Bypass Sink Check field set to Null, built into the procedure is a check to ensure that the sum of all the rows does not exceed 1.00. It is important to note that when calculating the sum, the system does not count the existing row against the total; instead, it uses the incoming value. This check is done for both the Schedule and Corporate Action tables. If the check generates an error during the insertion into the Schedule table, the system inserts nothing into either table. If, however, the errors occur during the insertion into the Corporate Action table, the insert to the Schedule table is rolled back, and the system inserts no rows into either table. As long as the check passes on both tables, the data is inserted successfully. If you set the Bypass Sink Check field to Yes, the system does not perform this check, and allows the schedule's schedule amounts to exceed 1.0, or 100%.

While writing data to the Corporate Action table, if a row does not exist, the system inserts a new row. If a row already exists for the sec alias and Effective Date, and the scheduled amount has not changed, no update takes place. If the schedule amount is different, the system calls the Corporate Action Cancel/Rebook procedure. As a result, the system updates the Status for the original row to CL, it inserts a new row, and it also inserts a CANCEL record for the original row. Both records are set with a Status = RD. The CANCEL record has a Sweep Date set to sys date. As for the new corporate action record, if the Effective Date of the original record <= sys date, Sweep Date is set to sys date; otherwise, Sweep Date = Effective Date.

Delete a Custom Sink Schedule

Add a Custom Sink Schedule

WRITERS NOTE: new section

In the Schedule tab of the Securities workspace, you can add a custom sink schedule for a sinking fund security. For more information about adding schedules in Reference Data Center, see Manage Schedules.

To add a custom sink schedule:

1. In Reference Data Center's Reference Desk workspace, click Securities in the left navigation.
   You see the Securities workspace with all the available securities.
2. Select a security, edit the security details, and then click the Schedule tab.
   The security must have the Sinking Flag option set to Yes for you to add a sink schedule or a custom sink schedule.
3. Click Add Security Data.
   You see the Add Schedule dialog box.
4. In the Schedule Type list, click CSTMSINK.
   This allows you to add a custom sink schedule. 

5. By default the Source Type box defaults to Gold Copy, but you can create new vendor data by selecting Vendor, and then selecting the corresponding Source.

6. Click OK.
   You see the Add Schedule panel with specific fields corresponding to the type of schedule you selected. 
7. In the Effective Date box, specify the effective date of the transaction.
8. In the Schedule Amount box, specify the amount for the schedule. 
   For a custom sink schedule, the Schedule Amount values must add up to 1.0, or 100%. However, if you set the Bypass Sink Check option to Yes, the system does not require the Schedule Amount values or payments for the custom sink schedule to add up to 1.0, or 100%.
9. In the Bypass Sink Check box, indicate whether the system bypasses the sink check, and ignores the restriction that requires the custom sink schedule entries to have Schedule Amount values for payments that total to a value of 1.0, or 100%. Options include:
   - Yes. The system bypasses the sink check. The system does not require the custom sink schedule entries to total to a value of 1.0, or 100%.
   - Null. Default. The system does not bypass the sink check. The system requires the custom sink schedule entries to total to a value of 1.0, or 100%. 
10. If you want to add one or more entries to the schedule, click Add Row, and complete the information for each additional row. 
11. Click Save.
    The system saves the schedule to the database.

When you add a custom sink schedule, the system creates a custom sinking fund schedule in the Schedule table,The schedule has a Schedule Type of CSTMSINK. The system also creates a corresponding custom sinking fund schedule in the Corporate Action table. The sink schedule has a Transaction Type of PMT, a Reason of Custom Sink, and. Corporate Action Notes of CUSTOM_SINK.

Edit a Custom Sink Schedule

In the Schedule tab of the Securities workspace, you can edit a custom sink schedule for a sinking fund security. For more information about editing schedules in Reference Data Center, see Manage Schedules.

To edit a custom sink schedule:

1. In Reference Data Center's Reference Desk workspace, click Securities in the left navigation.
   You see the Securities workspace with all the available securities.
2. Select a security, edit the security details and then click the Schedule tab.
3. Under Schedules, click the row for the schedule that you want to edit. 
   Ensure you select a row with a Schedule Sub Type of Custom Sink.
4. Under Schedule Details, click the row that you want to edit, and then click Override Value.
   You see the fields for the selected schedule row, You cannot change the Effective Date or Schedule Sub Type values. The Edit Type list shows a default value of Override.
5. In the Schedule Amount box, you can change the payment amount.
   For a custom sink schedule where the Bypass Sink Check field has a null value, the schedule's Schedule Amount values must add up to 1.0, or 100%. For a custom sink schedule where the Bypass Sink Check field has a Yes value, the system does not require the Schedule Amount values or payments for the custom sink schedule to add up to 1.0, or 100%.
6. Update the remaining fields as needed, click Apply and Close, and then click Save. 
   The system saves the revised record to the database.

When you edit a custom sink schedule, the system updates the custom sinking fund schedule in the Schedule table, If you change a schedule amount, the system also updates the corresponding custom sinking fund schedule in the Corporate Action table. 

Understand Custom Sink Corporate Action Announcements

WRITERS NOTE: verify if you can create announcement created manual in panel or they'd need a new panel? Verify if you can see the BYpass value onscreen. 

Eagle Accounting processes sinking fund payments associated with custom sink schedules based on information in the Corporate Action table.

After you use the Add Schedule panel or procedure to define a custom sink schedule in the Schedule table, Eagle Accounting automatically creates a corresponding custom sink schedule in the Corporate Action table The corporate action record has a a transaction type of PMT,, a Corporate Action Type (tag 1728) value of Custom Sink, and a Corporate Action Notes (tag 1740) value of CUSTOM_SINK. The Corporate Action table also stores the value set for the schedule's Bypass Sink Check option. 

When the system populates the Corporate Action table with the Custom Sink payment schedule, it bases the schedule on the percentage sunk. For example, if the Original Issue Amount is $1,000,000 and the Sinking Fund Percentage is .1%, the amount posted is $1,000. If you did not select the Bypass Sink Check option for the custom sink schedule, the entire custom sinking fund schedule must add up to 1 (100%). However, if you selected the Bypass Sink Check option for the custom sink schedule, Eagle Accounting lifts the restriction that the payments must add up to 1. 

Process Custom Sink Payments

In the Global Process workspace's Sink Schedule Processing panel, you can process sinking fund payments globally. Global processing only uses sinking fund values in the Corporate Action table that have a corporate action status of Released.

The Sink Schedule Processing panel allows you to process sinking fund payments associated with custom sink schedules as well as with sink schedules. For more information about using this panel, see Process Sinking Fund Payments.