About Settling Cash

Owned by Nancy Cohn (Deactivated)
Last updated: Aug 01, 2023
2 min read

 

Eagle Accounting can settle cash transactions manually or automatically in several ways, based on your business needs.

Use the Auto Settle Trade Indicator to Automatically Settle Trades during Trade Processing

You can use the Auto Settle Trade Indicator value to settle trades automatically during trade processing.

Each trade has an Auto Settle Trade Indicator (tag 58) value of Yes or No. This indicator, initially set at the entity level, identifies whether the system settles the trade, coupon, and miscellaneous income and expenses automatically. If set to:

  • Yes, the system creates a settlement when the trade is processed. There is no trade to settle date gain/loss. This applies even if the settlement date is in the future. The system retrieves the settle date FX rate if the local currency does not equal base and generates a trade to settle date gain/loss.

  • No, the system does not automatically settle the trade, coupon, and miscellaneous income and expenses. You must use a different method to manually or automatically settle the cash, such as Run Multiple Settlements, Run Contract Cash, or cash matching.

Run Multiple Settlements to Settle Transactions

If the Auto Settle Trade Indicator is set to No, the system does not automatically settle the trade, coupon, and miscellaneous income and expenses.

You can manually run or schedule the settlement for transactions using the Run Multiple Settlements panel. If you use the Run Multiple Settlements panel, and you select an entity that uses cash segregation, you can limit settlement processing to transactions associated with a single custodian.

Run Contract Cash to Settle Transactions

If the Auto Settle Trade Indicator is set to No, the system does not automatically settle the trade, coupon, and miscellaneous income and expenses.

You can use the Run Contract Cash panel to manually settle transactions for which the settlement date is less than or equal to the current/system date. Or you can schedule the corresponding event to automatically process cash settlements.

Use Cash Matching to Create Settlements

If you use cash segregation based on actual cash settlements, you can schedule settlements using the Run Cash Auto Match panel and create settlements manually using Cash Matching. 

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