Cap and floor transactions settle according to the following entity-level field elections selected for a fund:
Auto Settle Indicator
Contractual Cash Settlement Type
Contract Settle Indicator
The premium of the contract is eligible to be moved through cash on the settlement date of the opening transaction, and any date after.
For a description of these entity-level settings, see Create/Edit Entity Panel Options or Create Master Fund Panel Options.
For a Buy Cap/Floor Contract
Local Currency = Settle Currency = Base Currency:
Debit/Credit | G/L Account Name | G/L Account Number |
|---|---|---|
Debit | Investment Payable (Local) | 2002000100 |
Credit | Cash (Local) | 1001000100 |
Local Currency = Settle Currency ≠ Base Currency:
Debit/Credit | G/L Account Name | G/L Account Number |
|---|---|---|
Debit | Investment Payable (Local) | 2002000100 |
Debit | Investment Payable (Base) | 2002000100 |
Credit | Cash (Local) | 1001000100 |
Credit | Cash (Base) | 1001000100 |
Dr / Cr | Trade Date To Settlement Date Gain/Loss | 3006000702 |
For a Written Cap/Floor Contract or Sell to Open (Net Cap/Floor set to Yes)
Local Currency = Settle Currency = Base Currency:
Debit/Credit | G/L Account Name | G/L Account Number |
|---|---|---|
Debit | Cash | 1001000100 |
Credit | Investment Receivable | 1002000100 |
Local Currency = Settle Currency ≠ Base Currency:
Debit/Credit | G/L Account Name | G/L Account Number |
|---|---|---|
Debit | Payable for Investments Purchased (Local) | 2002000100 |
Debit | Payable for Investments Purchased (Base) | 2002000100 |
Credit | Cash (Local) | 1001000100 |
Credit | Cash (Base) | 1001000100 |
Dr / Cr | Realized Currency Gain/Loss | 3006000300 |