Understand Entities That Do Not Use Costcash Processing

If an entity does not require the costing of foreign currency and the recognition of realized currency gain loss, you do not need to use Eagle Accounting’s costcash processing with that entity. When an entity does not use costcash processing, the system performs the same calculation for foreign currencies as it does for domestic currencies. It does not treat foreign currency balances held in an entity as a Cost position.

When you do not use COSTCASH processing, it reduces the amount of data stored in those accounts by eliminating writes to the COSTCASH object. In a scenario where you use an external system to report and reconcile foreign cash, this can prevent redundant reporting of positions and cost in Eagle Accounting.

Set Up Entities with Costcash Processing Disabled

When an entity or master fund does not use costcash processing, you can set up the entity with the (hidden) Cost Cash Processing field (tag 5006) set to No and the Costcash Bulking Election (tag 2423) field set to No. For more information, see Set Up Entities for Costcash Processing.

Understand the Impact on the Architecture and STAR to PACE Direct

When you do not use costcash processing, the system does not create a COSTCASH position for cash activity where the asset currency is not equal to the base currency. The STAR to PACE Direct cash balance calculator performs the same calculation for foreign currencies as it is does for domestic currencies. Domestic currencies do not have a COSTCASH object in STAR.

Settlement Example with Costcash Processing Disabled

This scenario shows a non-base settlement for an entity with the Costcash Processing field set to No.

The figure shows the Position Viewer tool following the settlement of a non-base BUY transaction. The transaction settled in euros. In this case, the STAR engine did not create a row in the object for the settlement currency.