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A cash account relationship allows you to link a bank account relationship with a custody cash account. You can use cash account relationships to associate multiple cash accounts with a single custody account. A unique cash account relationship is comprised of a custody bank, bank code, cash account, settle currency, entity, and security type.

If you use cash segregation, cash account relationships allow the system to default cash accounts for cash records when a cash account is not provided and for internally generated cash such as for corporate actions. During transaction processing the system uses cash account relationships to apply the appropriate cash account to a transaction.

You can create cash account relationships to establish default cash accounts for different types of cash, such as trade, income, margin cash. Eagle also recommends that you define catch-all cash account relationships to serve as backup rules for assigning missing cash accounts in the event that the system cannot identify a more granular cash account relationship that meets specific cash criteria during processing. For example, you can create a cash account relationship with a Cash Event Type of Default and a Long/Short Indicator of Default.

If you use cash segregation, you must define bank account relationships and cash account relationships whether or not you plan to send transactions that include the cash account number. You must set up bank account relationships before you create cash account relationships.

On this page

Create Cash Account Relationships

In the Create Cash Account Relationship panel, you can add a cash account relationship. 

To create a cash account relationship:

  1. Do one of the following: 
    - In Accounting Center, in the left navigation pane, click Setup > Portfolio Setup > Custody Cash Accounts > Create Cash Account Relationship.
    - In Portfolio Data Center, in the left navigation pane, click Portfolio Desk > Accounting Portfolio Setup > Custody Cash Accounts > Create Cash Account Relationship.
    You see the Create Cash Account Relationship panel.

  2. Complete the options on the Create Cash Account Relationship panel.
  3. Click Submit.

Create Cash Account Relationship Panel Options

In the Create Cash Account Relationship panel, when you add a cash account relationship, you can select various options based on the requirements of your business. Note options may vary according to your selections.

OptionTagDescription

Entity Information



Entity ID7001Specifies the identifier of the entity or composite that you want to associate with a custodian bank.
Entity Name7002Specifies the abbreviated name for the entity or composite you want to associate with a custodian bank.

Entity/Custody Bank Relationship



Custody Bank Name1146Specifies the name of the custodian bank associated with a bank account relationship you want to associate with a cash account. If you specified a value in the Entity Information section, the lookup displays the custody banks with bank account relationships defined for the specified entity or composite.
Custody Bank Code1240Specifies the code value, or short name, used to identify the custodian bank holding the assets for the bank account relationship. If you specified a value in the Entity Information section, the lookup displays the custody banks with bank account relationships defined for the specified entity or composite.
Custody Bank Account Number1660Specifies the custodian bank account number for the entity that is held in custody for the bank account relationship.

Cash Account Information



Bank Code1176Specifies the code value, or short name, used to identify the custodian bank holding the assets.
Bank Name1177Specifies the name of the custodian bank associated with the selected custody bank code.
Choose Existing Account or Add New Account7000Indicates whether you want to select an existing cash account or create a new cash account. Options include:
  • Choose Existing Account.
  • Add New Account
Choose From Existing Bank Accounts962Specifies the cash account. This field appears if you set the Choose Existing Account or Add New Account field to a value of Choose Existing Account. In the field lookup, you see the existing cash accounts for the specified custody bank code. After you select an existing cash account, you see the values for that cash account displayed in this panel.
Cash Account Name11696Specifies the name of the cash account for the custodian. If you choose an existing cash account, this field is locked.
Cash Account Number11697Specifies the account number of the cash account for the custodian. If you choose an existing cash account, this field is locked.
Settlement Currency63Specifies the currency for the cash account. You can assign one currency to a single cash account. If a trade settles in different currencies than the asset currency, you create separate cash accounts for each of those currencies. If you choose an existing cash account, ensure you select the account with the appropriate settlement currency.

Cash Account Detail



Cash Account Type62Specifies the type of cash posted to the cash account for this cash account relationship. Eagle recommends that you define cash account relationships for income, margin, reclaim, and trade types at a minimum. Options include:
  • Default. Indicates that the cash account relationship applies to all cash account types. You can choose this option to assign a cash account when a more granular rule that matches the transaction's cash account type criteria is not available.
  • Income. Identifies cash with a cash category of Income. Applies to cash related to earnings processing.
  • Margin. Identifies cash for an event type of Margin. Applies to cash related to variation margin processing.
  • Reclaim. Identifies cash for an event type of Reclaim. Applies to cash related to tax reclaim processing.
  • Trade. Identifies cash with a cash category of Trade. Applies to cash related to processing for trades, corporate actions, and direct cash events. 
  • Secondary Cash Account. Identifies a cash account relationship between an entity and custodian that allows you to match one custody account against multiple cash accounts. For example, you can choose this option when you need to manually match repurchase agreement (repo) trades associated with more than one cash account over the life of the repo. While you can use this cash account on transactions, Eagle Accounting does not use cash account relationships associated with this option to provide a cash account for internally generated cash. 
Long/Short Indicator 15Specifies the type of transaction to which the cash account applies for this cash account relationship. Options include:
  • Default. Indicates that the cash account relationship applies to both long and short transactions. You can choose this option to assign a cash account when a more granular rule that matches the transaction's long/short criteria is not available.
  • Long. The cash account applies to long transactions.
  • Short. The cash account applies to short transactions.
Security Type82Specifies the security type of the asset for the cash account for this cash account relationship.
Cash Event Type53Specifies the cash flow direction for the asset for this cash account relationship. You must specify a value in the Security Type field in order to choose a cash event type. Options include:
  • Disbursement
  • Receipt
Settle Tolerance Trade528Specifies the maximum dollar amount difference accepted when matching bank settlements with trade amounts for open receivables/payables during automated cash matching based on actual cash settlements. If the difference exceeds this tolerance, the system does not allow a match. This tolerance applies to cash with a cash category of Principal (TRADE). The default value of zero indicates an exact match is accepted; enter a non zero value to indicate an acceptable difference.
Settle Tolerance Income527Specifies the maximum dollar amount difference accepted when matching bank settlements with income amounts for open receivables/payables during automated cash matching based on actual cash settlements. If the difference exceeds this tolerance, the system does not allow a match. This tolerance applies to cash with a cash category of Income (INCOME). The default value of zero indicates an exact match is accepted; enter a non zero value to indicate an acceptable difference.
Settle Percent Tolerance Trade770Specifies the maximum percentage difference accepted when matching bank settlements with trade amounts for open receivables/payables during automated cash matching based on actual cash settlements. The system applies the percentage to the open receivable/payable amount. If that amount is less than or equal to the difference between the actual settlement amount and the open receivable/payable, it is considered within tolerance and the system allows a match. If you enter both a settle trade tolerance and a settle trade percent tolerance, the system applies the more restrictive tolerance value. The default value of zero indicates an exact match is accepted; enter a non zero value that is a whole number to indicate an acceptable difference. For example, enter 50 to indicate 50 percent.
Settle Percent Tolerance Income769Specifies the maximum percentage difference accepted when matching bank settlements with income amounts for open receivables/payables during automated cash matching based on actual cash settlements. The system applies the percentage to the open receivable/payable amount. If that amount is less than or equal to the difference between the actual settlement amount and the open receivable/payable, it is considered within tolerance and the system allows a match. If you enter both a settle income tolerance and a settle income percent tolerance, the system applies the more restrictive tolerance value. The default value of zero indicates an exact match is accepted; enter a non zero value that is a whole number to indicate an acceptable difference. For example, enter 50 to indicate 50 percent.
Settle Date Tolerance9699Specifies the maximum difference in days accepted between settle dates when matching bank settlements with open receivables/payables during automated cash matching based on actual cash settlements. If the settle date difference exceeds this tolerance, the system does not allow a match. The default value of zero indicates an exact match is accepted; enter a non zero value to indicate an acceptable difference.
Default Entity Name1149Specifies the name of the default entity to use for sweeping, or releasing, unmatched cash into accounting at the end of the day for the cash account. During suspense processing system applies settled cash to this entity as settled cash in a suspense state. If you do not specify a value, the sweep unmatched cash process does not sweep unmatched cash into account for the cash account. If you choose an existing cash account, this field is locked.
Default Entity ID5Specifies the ID of the default entity to use for sweeping unmatched cash into accounting for the cash account. If you choose an existing cash account, this field is locked.
Custodial Cash Balance Indicator12868
Indicates this cash account relationship identifies the "true" custodian cash account to use for storing cash balances at the custodian and cash account level, which link to a Cost position. This field is hidden. The system uses this value to generate cash balances for the Eagle data warehouse position and lot level position tables for a given entity/basis/currency/cash account combination. Options include:
  • Yes. A value of Yes indicates that this is the "true" cash account relationship that STAR to PACE and Eagle Accounting reporting can use to roll up cash balances. This option is used in balance reporting to identify actual accounts when synthetic cash accounts roll into actual accounts, in order to identify the actual account.
  • No. Indicates that this is not the "true" cash account relationship that STAR to PACE and Eagle Accounting reporting can use to roll up cash balances.

List Cash Accounts Assigned using the Cash Account Relationship Hierarchy

In the List Cash Account Relationships panel, you can enter transaction criteria to identify the cash account that the system would assign to a transaction based on the hierarchy of bank account relationships and cash account relationships that best match the transaction's criteria.

After you set up cash account relationships, you can use this panel to verify how the system will use those rules to assign missing cash accounts during transaction processing. For example, for custodian ABC, you can verify what cash account the system will assign to an trade with a settlement currency of USD and a long/short indicator of Short.

To list cash accounts assigned using the cash account relationship hierarchy:

  1. Do one of the following: 
    - In Accounting Center, in the left navigation pane, click Setup > Portfolio Setup > Custody Cash Accounts > List Cash Account Relationships.
    - In Portfolio Data Center, in the left navigation pane, click Portfolio Desk > Accounting Portfolio Setup > Custody Cash Accounts > List Cash Account Relationships.
    You see the List Cash Account Relationships panel.

  2. Click the Please Select Action field, and select the Hierarchical Cash Account Relationship.
  3. Click the Custodian Bank Name field, the Custodian Bank Code field, or the Custody Bank Account Number field, and select the bank account relationship for the custody location associated with the transaction.
    After you select a value in one of these lookup fields, you see the corresponding values defined for the bank account relationship appear for the other two fields.
  4. In the remaining fields in the panel, enter the values that apply to the transaction.
    At a minimum, you must specify the transaction's settlement currency. You can additionally identify the entity name/ID, transaction's cash account name/number, cash account type, long/short indicator, security type, and cash event type.
  5. Click Submit.
    You see the name, number, and alias of the cash account that best met your transaction criteria in the Show All tab.


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