Plan the Cash Recon Setup

Before you can set up the Cash reconciliation, you must decide on the location of the data to reconcile, the level of reconciliation, and the mode of comparison suitable for the location of records. You can specify traded (that is, pre-settled) or settled cash activity cash data for reconciliation.

Decide on the Location of Data

To define your business data model, you must decide where to locate your data. Ledger balances and lot level positions reside on the Eagle data warehouse. You can copy positions data to local work tables or use the data directly from the Eagle data warehouse or the ESTAR Portfolio Valuation tables.

Options include:

• Flat files sent by a custodian/external sources
• ESTAR database for settled/pre-settled activity
• Eagle data warehouse

Decide on the Level of Reconciliation

You must decide whether to reconcile at the security level or reconcile at the transaction level. For example, you can post both the paydown and a coupon for a mortgage backed security to Eagle Accounting but reconcile to a custodian that sends one amount for the security, by selecting to reconcile at the security level.

When you reconcile at the security level, the system matches cash activity records on:

• Transaction Date
• Fund
• Security

When you reconcile at the transaction level, you additionally match on:

• Cash Event Type
• Cash Category
• Transaction Type
• Settlement Currency

The type of transaction date used in the match depends on the mode of comparison you choose for reconciling cash activity. The system selects cash activity records by:

• Post Date for data warehouse to data warehouse comparisons
• Trade Date for ESTAR traded cash activity to data warehouse comparisons
• Settlement Date for ESTAR settled cash activity to data warehouse comparisons

Decide on the Mode of Comparison

You must decide on the mode of comparison for reconciling cash activity. There are several possible modes for matching records, depending on the combination of source and data location assumed for cash activity reconciliation. You must choose one combination for your overall reconciliation strategy and configure the MSGSERVICE.INI parameters for DataSetOption option. See the Configure the MSGSERVICE.INI Parameters section for additional information. The system uses positive values (such as 2, 3, and 4) to indicate that cash reconciliation occurs at the transaction level. And the system uses negative values (such as -2, -3, and -4) to indicate that cash reconciliation occurs at the security level.

The following are the DataSet Options.