Understand When Entities Do Not Require COSTCASH Processing
COSTCASH processing is not required for an entity when:
You do not require costing of foreign currency and the recognition of realized currency gain loss recognized on settlement date
You do not use general ledger processing
You do not need to maintain foreign currency balances within accounting
Use of COSTCASH processing for an entity is optional. Be aware that entities require COSTCASH processing under certain conditions.
Set Up Entities
without COSTCASH Processing
When an entity or master fund does not use COSTCASH processing, you can set up the entity with the (hidden) Cost Cash Processing field (tag 5006) set to No and the Costcash Bulking Election (tag 2423) field set to No. You can also set the Cost Cash Processing field to No at the accounting basis level. For more information, see Set Up Entities for COSTCASH Processing.
If you set Cost Cash Processing to No for an entity/basis, be aware:
Any existing COSTCASH records remain in the COSTCASH object, Eagle data warehouse, and ledger until deleted.
If the entity has multiple accounting bases, you must disable COSTCASH processing on each accounting basis to completely shut it off.
System Impact without COSTCASH Processing
When you do not use COSTCASH processing, the system does not create a COSTCASH position for cash activity where the asset currency is not equal to the base currency. The STAR to PACE Direct cash balance calculator performs the same calculation for foreign currencies as it is does for domestic currencies. Domestic currencies do not have a COSTCASH object in STAR.
When you do not use COSTCASH processing,
WRITERS NOTE: what to say about URGL??? calculate URGL via loopback or panel? just for domestic currency?
Settlement Example with COSTCASH Processing Disabled
This scenario shows a non-base settlement for an entity with the Costcash Processing field set to No.
The figure shows the Position Viewer tool following the settlement of a non-base BUY transaction. The transaction settled in euros. In this case, the STAR engine did not create a row in the object for the settlement currency.
On this page