Eagle Accounting's business calendars limit fund processing to occur only on valid business days. You can define a calendar for every country, and can set up calendars to include holidays and other non-business days specific to each country. You can then use these calendars to:
- Define accounting periods
- Process income and expense accruals for weekends and holidays
- Limit trade, cash settlement, and corporate action processing to occur only on business days
Setting up a business calendar is optional. If you do not set up a business calendar for an entity, fund processing that occurs on non-business days occurs with a non-business day accounting date. For example, accruals on Saturday occur with an accounting date of Saturday.
It is not necessary to attach a calendar to every entity. By omitting a calendar from the entity master record, daily accounting periods are created for every day of the year. If you select a calendar, accounting periods are created for business days only.
When a security master record has a business day calendar adjustment or pays on a specific business day of the month, the system calculates the business day based on the Issue Country (ISO) Country Code. The system then uses the business calendar in the calculation of coupon payment days when the security has a business day convention or pays on a specific business day. As a best practice, Eagle recommends that you populate the business calendar as far out as possible, so that the system can accurately calculate future cash flows.
Eagle's Accounting solution supports two types of business calendars. The business date calendar defines business days and non-business days. Earn thru rules specify how the system processes accrued income and expenses when a series of non-business days fall on a month-end, quarter-end, semi-annual, or year-end date. The settlement date calendar defines settlements and limits trade, cash settlement, and corporate action processing to valid business days. Once added, you can associate the settlement date calendar with a trade using the relevant trade panel.
You can add a business calendar manually in Accounting Center, or add it using Automation Center. Once added, you associate it with one or more entities. The calendar's earn thru rules need to be consistent with the associated entity's earn thru rules.
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