Process Earnings for Buy Sellback and Sell Buybacks
The Earnings process in Eagle Accounting accrues interest on the positions of buy sellback and sell buyback securities, with processing security type equal to DBIBSB, on a daily basis.
The Earnings process handles these types of securities the same way that it processes earnings for short term fixed income securities where interest is payable on maturity. The exception is that the system recognizes tag 1604 for the Accrual Convention Offset Override, and uses this tag to decide if accruals are to start from the settlement date or are to be based on the entity election. The Accrual process can support a negative coupon rate for buy sellback and sell buyback securities.
The positions of buy sellback and sell buyback securities do not take part in the Amortization process, as they are purchased at a price of 100.00, priced at 100.00 on a daily basis, and matured at a price of 100.00. There are no postings for amortization.