Overview
There may be a requirement to shut off accruals for a security or position in Eagle Accounting for market or operational reasons. The most common drivers are going into default, being priced dirty in the market, or having an unsupported accrual calculation.
One option to support these scenarios is to set up the security with a fixed rate of 0%, which will generate accrued interest of zero on a daily basis. In cases where manipulating the market reference data is not feasible, another option is to put the security or position in default. This allows you to suppress accruals, amortization/accretion, and/or OID.
Putting a security in default is a two-step process that involves populating fields on the security master file (SMF) and adding Debt Default Periods. This can create challenges for automation as most clients do not have an existing source that can generate the Debt Default Period messages.
This document describes a local workaround that can be implemented to add Debt Default Periods automatically during security creation when the security is created simply by setting Default Indicator (1551) = Yes. The process works when the security is set up via automation with a message or manually in Issue Viewer.
Assumptions
This process will create Debt Default Periods with:
Add Periods Based On (1256) =
Security
Accounting Basis (21) null
While this field is required in the panel for security-level records, it is not required on the underlying event and testing confirms accruals are successfully suppressed when it is left null
Default Type (1551) =
Income
The same general process could be used with other elections for the fields above, but it would require adjustments to the logic and/or additional fields on the SMF panel.
Securities created in Reference Data Center will not invoke this process.
Implementation
Step 1: Copy Create Debt Default Period Panel to Lookups Folder
The Create Debt Default Period panel (pan-adefaulttype.htm) has logic to change the Event Type (55) between ADD_POS_DEFAULT and ADD_SEC_DEFAULT depending on whether a position-level or security-level record is being added. However, the default Submessage in the panel’s Global Properties, which is also the default Event Type, is ADD_POS_DEFAULT.
When a panel is called as a lookup (from another panel), the default Submessage (Event Type) is always used regardless of the panel logic and what is mapped to it. For this reason, we need a copy of the panel with a default Submessage of ADD_SEC_DEFAULT.
Open Web Panel Designer
Navigate to eagle > star > reference > Debt Default Periods
Right-click Add Debt Default Periods/Inhibit Earnings and select Copy
Navigate to eagle > star > LOOKUPS
Right-click LOOKUPS and select Paste as
Name the panel
pan-adefaulttype-sec.htm
Open the panel and change to Overlay edit mode
Click Global Properties…
Change Submessage to
ADD_SEC_DEFAULT
and click OKYou will receive a message asking if you want to change the default value for tag 55
Click Yes
Save your changes
Step 2: Update Panel for Adding Multi-Leg Swaps
Once we have a panel that can create the appropriate records when called as a lookup, we can add the logic to call that panel from the Multiple Leg Swap panel (pan-addsecmastermultilegswap.htm). There are also tweaks to allow Default Indicator (1551) and Default Date (10142) to be set independently on each leg when creating a swap manually via Issue Viewer. Currently the values are entered on the contract and then propagated down to the legs.
Open Web Panel Designer
Navigate to eagle > star > reference > Add/List Issue
Open Multiple Leg Swap and change to Overlay edit mode
Click the …LISTBOX tab
Locate the 3931i Link ID
In the first Script section, remove L1551 and L10142 from the “Before” line below
Before:
IF :4590: != "C" THEN SET(L14,L1432,L38,L1551,L10142,L3997,L3998);
After:
IF :4590: != "C" THEN SET(L14,L1432,L38,L3997,L3998);
Locate the 1551i Link ID
Comment out the whole existing Script section:
1551i !Script 1551i !Defentry :1551: 1551i !class global 1551i !Text Loop(:vi:, :0:1551:, :0:1551:) [ 1551i !Text Loop(:vl:, :0:1551:, :0:1551:) [ 1551i !Text IF Not(IsEmpty(:vi:)) AND :vi:!=:vl: THEN FORCE(:vl:,:vi:) 1551i !Text ]; 1551i !Text ]; 1551i !End
Add this new Script section before the one we just commented out:
1551i Script 1551i Defentry :1551: 1551i Text IF :1551: = "Y" AND :68: != "" THEN ASSIGN(:10142:,:68:); 1551i End
Locate the10142i Link ID, which should immediately follow 1551i
Comment out this whole section:
10142i !Script 10142i !Defentry :10142: 10142i !class global 10142i !Text Loop(:vi:, :0:10142:, :0:10142:) [ 10142i !Text Loop(:vl:, :0:10142:, :0:10142:) [ 10142i !Text IF Not(IsEmpty(:vi:)) AND :vi:!=:vl: THEN FORCE(:vl:,:vi:) 10142i !Text ]; 10142i !Text ]; 10142i !End
Locate the 7705i Link ID
Add the code below to the end
7705i Lookup V1_20 7705i LookupName Insert Pay Leg Debt Default Period 7705i Type VALIDATOR 7705i ExecuteType AFTEREDIT 7705i Depends V1_2 7705i Condition :1551: = "Y" AND :10142: != "" AND :4590:="P" AND GetLookup("V1_2").GetLastRequestStatus() > 0 7705i Panel pan-adefaulttype-sec.htm 7705i showlookupstatus yes 7705i SourceMapIDs 21="USTAX":10=10:1551="INCOME":220=10142:4852="Created automatically during security setup.": 7705i IsQuery no 7705i End 7705i Lookup V1_21 7705i LookupName Insert Receive Leg Debt Default Period 7705i Type VALIDATOR 7705i ExecuteType AFTEREDIT 7705i Depends V1_3 7705i Condition :1551: = "Y" AND :10142: != "" AND :4590:="R" AND GetLookup("V1_3").GetLastRequestStatus() > 0 7705i Panel pan-adefaulttype-sec.htm 7705i showlookupstatus yes 7705i SourceMapIDs 21="USTAX":10=10:1551="INCOME":220=10142:4852="Created automatically during security setup.": 7705i IsQuery no 7705i End
Save your changes
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