Cap and floor transactions settle according to the following entity-level field elections selected for a fund:
- Auto Settle Indicator
- Contractual Cash Settlement Type
- Contract Settle Indicator
The premium of the contract is eligible to be moved through cash on the settlement date of the opening transaction, and any date after.
For a description of these entity-level settings, see Create/Edit Entity Panel Options or Create Master Fund Panel Options.
For a Buy Cap/Floor Contract
Local Currency = Settle Currency = Base Currency:
Debit/Credit | G/L Account Name | G/L Account Number |
|---|---|---|
Debit | Investment Payable (Local) | 2002000100 |
Credit | Cash (Local) | 1001000100 |
Local Currency = Settle Currency ≠ Base Currency:
Debit/Credit | G/L Account Name | G/L Account Number |
|---|---|---|
Debit | Investment Payable (Local) | 2002000100 |
Debit | Investment Payable (Base) | 2002000100 |
Credit | Cash (Local) | 1001000100 |
Credit | Cash (Base) | 1001000100 |
Dr / Cr | Trade Date To Settlement Date Gain/Loss | 3006000702 |
For a Written Cap/Floor Contract or Sell to Open (Net Cap/Floor set to Yes)
Local Currency = Settle Currency = Base Currency:
Debit/Credit | G/L Account Name | G/L Account Number |
|---|---|---|
Debit | Cash | 1001000100 |
Credit | Investment Receivable | 1002000100 |
Local Currency = Settle Currency ≠ Base Currency:
Debit/Credit | G/L Account Name | G/L Account Number |
|---|---|---|
Debit | Payable for Investments Purchased (Local) | 2002000100 |
Debit | Payable for Investments Purchased (Base) | 2002000100 |
Credit | Cash (Local) | 1001000100 |
Credit | Cash (Base) | 1001000100 |
Dr / Cr | Realized Currency Gain/Loss | 3006000300 |
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