About Changing Amortization & Accretion Rules

If you need to create a new amortization rule that is based on a new Begin Date, then you change the existing amortization rule using the Edit Amortization & Accretion Rules panel.

Note that in normal processing, whenever the system finds an amortization rule, the system stores the rule row Instance on the lot as tag 4256. Each time the system selects a rule, the Earnings process checks tag 4256 to see if the Instance of the amortization rule has changed. If the amortization rule Instance has changed and the change to the amortization rule can affect the yield result, Eagle Accounting initiates a retrospective or prospective amortization calculation that is based on the value in the Amortization Rule Change Application (tag 9007) field. For a list of the types of changes to an amortization rule that require the system to recalculate the yield, see Understand Yield Recalculation after an Amortization Rule Change.

If you set Amortization Rule Change Application (tag 9007) to:

• Retrospective from Original Settlement Date, a retrospective amortization calculation is processed using the Original Settlement Date of the tax lot as the start point of the retrospective calculation.

• Retrospective from Settlement Date a retrospective amortization calculation is processed using the Settlement Date of the tax lot as the start point of the retrospective calculation.

• Prospective, a prospective amortization calculation occurs based upon the amortize cost as of the amortization rule effective data.

For more information, see How the System Calculates Amortization After an Amortization Rule Change.