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When you use custom sink schedules to process sinking fund payments, you specify the Custom Sinking Fund Schedule in the Schedule table and you specify the corresponding Sinking Fund Schedule in the Corporate Action table. The Add Schedule procedure automatically updates the corporate action record. You add the sink payments as sink percentages. For example, you enter a 10% Sinking Fund Payment as .10. The entire Sinking Fund Schedule must add up to 1.00 in each of the tables when you define a typical sinking fund schedule. However, you can set up a custom sink schedule to bypass the requirement to add up to 1.00 in each of the tables.
When you use custom sink schedules, there is an underlying assumption that, temporarily, there will be a difference between schedule data and the corresponding corporate action data. This workflow accommodates the need to match cash activity produced by revised sink payment actions versus the actual payments received, with the expectation that the schedule data will be ultimately be adjusted to reflect the actual cash payments received.
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