Understand COSTCASH Bulking

At the end of Contract Cash processing, the system generates and processes COSTCASH events. When you use COSTCASH bulking, the system groups COSTCASH events by a number of parameters including:

• Message type (MTOPEN or MTCLOSE)

• Entity ID

• Asset ID

• Cash Event Type (DISB or RECPT)

• Post Date

• Settlement Date

• Accounting Date

• Monthly Accounting Period Date

• Batch Event ID

The grouping of COSTCASH messages reduces the number of loopbacks generated and the number of rows in the Cost object,. This improves performance and eliminates specific issues that had occurred due to enormous Cost objects.

Set Up COSTCASH Bulking

When an entity or master fund uses COSTCASH processing with COSTCASH bulking, you can set up the entity with the (hidden) Cost Cash Processing field (tag 5006) set to Yes and the Costcash Bulking Election (tag 2423) field set to Yes. For more information, see Set Up Entities for COSTCASH Processing.

COSTCASH Bulking Examples

The system performs the COSTCASH bulking process internally without manual intervention. Rather than sending individual COSTCASH loopbacks to the engine, a stored procedure writes the events to a table. Another stored procedure then sums up the table elements and creates COSTCASH loopbacks.

The following example illustrates how the bulking process affects the Cost object as well as reporting. A total of six buys and three sells are processed for the same security. Using a simple scenario, all of the buys have the same trade date, units, and net amount, which is the same scenario for all of the sells.

These events produce just one open row and one close row for this security. The bulked rows each have a quantity and net amount of 60,000 as opposed to the individual rows with 10,000 apiece on the unbulked entity. The following two figures show the close rows and the open rows of the Cost object in this bulking scenario.

The following sample scenarios compare the nonbulking process and bulking process for these buys and sells.

Nonbulking Process Example

In the unbulked scenario, there are 12 separate COSTCASH rows in the Cost object, one for each of the buys and two for each sell, since they individually close down each row.

The following figure shows the close rows of the Cost object in this nonbulking scenario.

Open

The following figure shows the open rows of the Cost object in this nonbulking scenario.

Open

In addition, the ledger has one entry for each sell, as there is realized currency gain/loss. In the unbulked scenario, there are multiple COSTCASH loopbacks and therefore multiple ledger entries.

The following figure shows the Accounting Journal results for the unbulked entity.

Bulking Process Example

Alternatively, when you enable COSTCASH bulking, the same events produce just one open row and one close row for this security. The bulked rows each have a quantity and net amount of 60,000 as opposed to the individual rows with 10,000 a piece on the unbulked entity.

The following figure shows the close rows of the Cost object in this bulking scenario.

The following figure shows the open rows of the Cost object in this bulking scenario.

The ledger activity also displays as one bulked row. The amount is the same although it is contained in just one ledger entry, as shown in the following figure.