Manage Sinking Fund Payments

Eagle Accounting only processes mandatory sinking fund payments. To correctly process sinking fund payments, you must specify the Sinking Fund Schedule in both the Schedule table and the Corporate Action table. The Add Schedule procedure automatically updates the corporate action record. You add the sink payments as sink percentages. For example, you enter a 10% Sinking Fund Payment as .10. The entire Sinking Fund Schedule must add up to 1.00 in each of the tables. As part of the calculation of amortization yield, Eagle Accounting sweeps the Schedule table to calculate future cash flows. Eagle Accounting processes sinking fund payments based on information in the Corporate Action table.

Some sinking fund bonds provide factors instead of sink percentages. To process sinking funds in Eagle Accounting, you must translate a factor to a percentage of current face sunk. A sinking fund payment does not reduce the original face amount, but instead uses this amount to determine the amount of principal that is reduced for the lot (current face).