Set Up Entities to Recognize Cash-Based Dividend Income
You can set up the Cash Based Div Recognition Flag field (tag 16160) and the FX Election for Cash Div Recognition field (tag 16161 in the panels where you define entities, master funds, and accounting bases as follows. For example, you find these basis-level options that apply to recognizing cash-based dividend income in the Create/Edit Entity panel, the Add a Basis to a Portfolio panel, and the Create Master Fund panel.
Option | Tag | Description |
|---|---|---|
| Cash Based Div Recognition Flag | 16160 | Indicates whether to recognize dividend income on a cash settlement basis, or to use the default setting that recognizes dividend income on an ex-date basis. Options include:
|
| FX Election for Cash Div Recognition | 16161 | Indicates whether the system records the dividend income using the ex-date FX rate or the settlement date FX rate. This field appears if you set the Cash Based Div Recognition Flag field to a value of Yes. Options include:
|
Set Up Securities when You Recognize Cash-Based Divided Income
The ability to recognize dividend income on a cash settlement basis does not apply to Registered Investment Company (RIC) and Real Estate Investment Trust (REIT) securities, as a general rule,
If you want to override the basis-level election of Cash Based Div Recognition Flag set to Yes for specific types of securities such as RICs and REITs, you must identify those securities as RICs or REITs.
The REIT Flag field (tag 16159) was added to the Equity/Mutual Fund panel.
Set Up Security Processing Rules when You Recognize Cash-Based Divided Income
You can set up the Cash Based Div Recognition Flag field (tag 16160) and the FX Election for Cash Div Recognition field (tag 16161 in the panels where you define entities, master funds, accounting bases, and security processing rules.
Set Up Reports to Recognize Cash-Based Dividend Income
Several reports were updated to ensure this new cash dividend recognition method is correctly reflected. These reports include Traded Cash Activity, Dividend Income, Consolidated Earned Income, Ledger Sub-Ledger Recon, and Unsettled Transactions.
Set Up Control Center for Cash-Based Dividend Income
In Control Center, the EPDIT edit test was updated. This edit test leverages the Past Due Interest report (SPRECEIVABLEPAYABLEREPORT), and compares the report output results to a user defined day tolerance. If the interest receivable balance is past due (unsettled) and exceeds the tolerance setting, a raised edit test result is delivered to Control Center. An alert is generated for each day that the receivable balance remains unsettled.BLEREPORT), and compares the report output results to a user defined day tolerance. If the interest receivable balance is past due (unsettled) and exceeds the tolerance setting, a raised edit test result is delivered to Control Center. An alert is generated for each day that the receivable balance remains unsettled.
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