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All calculations are performed at the lot level (For example, no market discount from one lot shall be applied to another when calculating the amount of amortization to recognize). The election for Accelerated Market Discount applies only to Identified Lot (IDLOT) cost accounting.
You set up Accelerated Market discount at the amortization rule level by setting the Amortization at Disposition and Paydown Costing Allocation field value, as follows. For information about creating and editing amortization & accretion rules, see Manage Amortization & Accretion Rules.
To use the election set:
Amortization at Disposition (tag 3902): Yes
Paydown Costing Allocation (tag 16008): Accelerated Market Discount Recognized
When setting up a rule to follow Accelerated Market Discount and PAC method (For example, Yield Type Net Present Value, Adjustment Type PAC), you must set up individual accretion instances for Amortization/Accretion Election (tag 3933) for MD and MP.