Before you process call, put, and pre-refund corporate actions, ensure you set up the following related entity and accounting basis level option.
Redemption Gain Loss Indicator (tag 8916). Indicates whether the system processes gains/losses on calls, puts, and pre-refund corporate actions for the entity/accounting basis. This option is required if you process debt instruments. Options include:
- Gain/Loss. Default. The system redeems gains/losses that result from calls, puts, and pre-refund corporate actions.
- Amortize. The system amortizes gains/losses that result from calls, puts, and pre-refund corporate actions. It applies an accelerated amortization method.
If a security is processing a Call/Put/Pre-Refund transaction, and you do not have amortization applied for that position, Eagle Accounting treats the gain/loss from a Call/Put/Pre-Refund transaction as Gain/Loss.
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