Commercial Paper Best Practices

Owned by Jawann Swislow
Last updated: Aug 02, 2023
1 min read

Overview

This document applies to all releases of Eagle software. Version-dependent functionality is noted with the initial release(s) it became available.

Commercial Paper is short-term debt that is issued at a discount and matures within 270 days. Eagle Accounting has full support for Commercial Paper as part of the core fixed income processing. Refer to  for general information about the discount bond functionality.

Entity Setup

Special attention should be paid to the fields listed below. Details about these fields are available in .

  • Short Term Price Method (1872): Market or Cost

  • Short Term Discount Accrual Flag (8919): Amortize or Accrue Discount

Reference Data

Security Data

Commercial Paper can be set up and maintained in Issue Viewer, Security Reference Manager (SRM), or Reference Data Center (RDC). Note the fields listed below.

  • Processing Security Type (3931) = DBDCST (Non Interest Bearing Discount Bond/Note)

  • Coupon (70) = 0.00

  • Coupon Type (97) = F (Fixed)

  • Payment Frequency (472) = MAT (At Maturity)

  • OID Indicator (218) = Yes

Accounting

Once a Commercial Paper trade is booked, it will be picked up in Eagle’s global workflow. Amortization/accretion is calculated as part of the earnings process. This can be scheduled or triggered manually.

  • V17 & Above: Accounting Center > Processing and Exceptions > Global Processes

    • Accruals: Earnings > Run Income Accruals

  • Prior to V17: Global Process Center

    • Accruals: Earnings > Accrue

Mature

Commercial Paper will be picked up by Eagle Accounting’s core maturity process, which will trigger a cash payment for the full par amount. This will be scheduled in production environments, but can be triggered manually via:

  • V17 & Above: Accounting Center > Processing and Exceptions > Global Processes > Expirations & Maturities > Run Mature Process 

  • Prior to V17: Global Process Center > Expirations > Mature