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Eagle Accounting allows you to use custom sink schedules rather than sink schedules with sinking fund securities in cases where you need the ability

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to correct sink payments for securities for which the payment differs from

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the expected payment. Custom sink schedules allow you to address a scenario

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that can occur for securities such as private placements where the actual sinking fund payments often differ from the expected sinking fund payments based on predefined schedule data, and you need to process the revised sink payments easily. 

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Custom sink schedules

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allow you to

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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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bypass the restriction on sink payment corporate action records where the total of the sink payments for a given security must be equal to 1 (100%). When you bypass this restriction, the Eagle system assumes that you will update any associated schedule or corporate action data accordingly in order to reflect the unexpected amount received, but will do this subsequent to the processing of the revised payment.

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