Create an Amortization Schedule Override Based on a Price

Owned by Nancy Cohn (Deactivated)
Last updated: Nov 22, 2023
2 min read

In the Create Amortization Schedule Override panel, you can add a user defined amortization schedule based on a price for an Identified Cost portfolio.

When you create an amortization schedule override, you can base it on either a price or a percentage, but not both. If you create a user defined amortization schedule based on a price or schedule, you cannot also use the user defined yield (entered using the Override Yield panel) for the same lot.

After you create a user defined amortization schedule based on a price, Eagle Accounting amortizes to the date and price, based on the amortization method indicated on the appropriate amortization rule. If amortizing OID, Eagle Accounting amortizes both market and OID streams to the target amortization price. If you set up a schedule with a price, but no date and price exist, Eagle Accounting does not amortize. Also, there is a possibility that, based on the user defined values, Eagle Accounting does not go to redemption value, and therefore a gain/loss can occur at maturity.

To create an amortization schedule override based on a price:

  1. Do one of the following:
    - In Portfolio Data Center, in the left navigation pane, click Portfolio Desk > Accounting Portfolio Rules > Amortization & Accretion > Create Amortization Schedule Override.
    - In Accounting Center, in the left navigation pane, click Setup > Portfolio Rules > Amortization & Accretion > Create Amortization Schedule Override. 
    You see the Create Amortization Schedule Override panel.

  2. Set the Add User Defined Amortization Based On field to a value of Price.

  3. Identify the entity, security, and tax lot for the user defined amortization schedule you are adding.
    You must select an entity with a Cost Method set to Identified. You can select securities with a processing security type eligible for the amortization process. If the selected lot does not include an Amortization Schedule ID value, you must add it before you proceed. See Change the Amortization Schedule ID for a Lot.

  4. Complete the remaining options on the Create Amortization Schedule Override panel.

  5. Click Submit.

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