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Eagle Accounting recognizes a security as a sinking fund bond when you set the security's Sink Flag (tag 1780) option to Yes. When the security master record has the Sink Flag field set to Yes, the system expects you to populate a sinking fund schedule, both in the Schedule table and in the Corporate Action table.

However, if you expect actual sinking fund payments to change from expected payments, and plan to use custom sinking fund schedules rather than sinking fund schedules, you must also set the security's Sink Flag (tag 1780) option to Yes. The system then allows you to define a custom sinking fund schedule in the Schedule table and the system, in turn, defines a corresponding sinking fund schedule in the Corporate Action table.

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. 

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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.

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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.

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