Create/Edit Entity Panel Options

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Specifies the type of entity you are creating. Options include:

• Portfolio. Default. The system creates a basic entity that stores accounts, positions, and history for trading purposes.
• Benchmark. The system creates an entity you can use for "what if" exercises through modeling. For example, you can set up a benchmark to determine the impact of events such as a change in interest rates without actually buying or selling securities.

Specifies the primary accounting basis for the entity. You cannot edit this field after you create the entity. The system is installed with a set of values for this field. You can add additional code values using the Codes workspace. Options include:

• USTAX. Default. The system is set up in accordance with domestic tax regulations.
• GAAP. The system is set up in accordance with Generally Accepted Accounting Principles (GAAP). This is the most common basis.
• IFRS. The system is set up in accordance with International Financial Reporting Standards (IFRS).
• STAT. The system is set up for use with statutory insurance.

Indicates whether the selected accounting basis is the entity's controlling or non-controlling basis for use with same lot selection processing. Same lot selection allows the system to relieve the same lots across multiple bases in order to keep lots in sync across bases. Options include:

• Yes. Indicates that the accounting basis identified in the Accounting Basis field (tag 21) is the entity's controlling basis during same lot selection. The controlling basis is the accounting basis that controls lot selection for closing transactions. An entity can have a single controlling basis. You can designate a primary or a non primary basis as the controlling basis. 
• No. Indicates that the accounting basis identified in the Accounting Basis field (tag 21) is a non-controlling basis for the entity during same lot selection. A non-controlling basis attempts to close the same lots that the controlling basis closed. An entity can have one or more non-controlling bases.
• Empty. Indicates that the accounting basis identified in the Accounting Basis field (tag 21) does not participate in same lot selection.

Specifies the regulatory category associated with International Financial Reporting Standards (IFRS). A regulatory category is a classification that determines how to account for financial instruments. The new IFRS 9 categories that replace IAS 39 categories include Amortized Cost, Fair Value - Other Comprehensive Income, and Fair Value Profit Loss. IFRS 9 categories classify debt instruments based on their contractual cash flow characteristics and the business model in which they are held. Equity securities are classified in the FVOCI or FVPL regulatory categories. If you set the Accounting Basis field to a value of IFRS, you must specify a regulatory category. If you choose an accounting basis value other than IFRS, use of a regulatory category is optional. All investments within an entity/accounting basis must have the same regulatory category. A multi basis entity can have different regulatory categories by basis. Options include:

• AC (Amortized Cost). Used for debt instruments when the business model in which the financial assets are held has an objective to hold assets to collect contractual cash flows. Contractual cash flows must be solely payments of principal and interest on the principal amount outstanding (P&I).
• AFS (Available for Sale). Used for financial assets that are available for sale.
• AFSC (Available for Sale at Cost). Used for instruments that are valued at cost and are available for sale.
• FVO (Fair Value Option). Used for instruments managed on a fair value basis.
• FVOCI (Fair Value – Other Comprehensive Income). Used for debt instruments when the business model in which the financial assets are held has an objective both to hold assets to collect contractual cash flows and to sell financial assets. Contractual cash flows must be solely payments of principal and interest on the principal amount outstanding (P&I). Used for equity investments only if an entity makes an irrevocable election on initial recognition for the equity investments to be measured at FVOCI without recycling gains and losses to earnings.
• FVPL (Fair Value Profit Loss). Used for all other instruments, including derivatives, those held for trading, and those managed on a fair value basis. Includes debt instruments not qualified for AC or FVOCI regulatory categories. Also includes equities not designated as FVOCI and derivatives plus debt securities that are classified with an FVO election.
• HFT (Held for Trading). Used for instruments held with the intent of selling them.
• HTM (Held to Maturity). Used for non derivative financial assets that you intend to hold to the asset's maturity or payment date and whose cash value is not needed until that date.
• LR (Loans and Receivables). Used for non derivative financial assets with fixed or determinable payments that are not quoted in an active market.
• MFFVO (Mutual Fund Fair Value Option). Used with mutual funds with a Fair Value Option category. This regulatory category is for informational purposes only, and does not have a corresponding custom chart of account to use in ledger reporting. No core processes for Eagle's Accounting solution are affected.
• MFHFT (Mutual Fund Held for Trading). Used with mutual funds with a Held for Trading category. This regulatory category is for informational purposes only and does not have a corresponding custom chart of account to use in ledger reporting. No core processes for Eagle's Accounting solution are affected.
• O (Other). Used for other instruments.

Specifies the cost method the system uses to calculate gain/loss amounts from the sale of security lots held by the entity. You cannot edit this field once the entity has holdings. Eagle's Accounting solution is a multiple basis accounting system. If you set up an additional accounting basis, it must have the same cost method as the primary accounting basis. Options include:

• Identified. Default. The system determines which lot to relieve (sell) based on the value in the Lot Selection Method field. After identifying the lot, the system determines its cost and compares that to the lot's earnings to calculate a gain or loss amount for reporting purposes. If you select Identified, you can amortize fixed income securities using all the options the system has available.
• Average. The system determines which lot to relieve (sell) based on the value in the Lot Selection Method field. After identifying the lot, the system determines the average of all of the holdings (total cost of holdings divided by the number of holdings) to calculate a gain or loss amount for reporting purposes. If you select Average, you can amortize fixed income securities using only selected options the system has available. The system applies the total amortization to individual lots based on the percentage of total par owned in the position.

Specifies the lot selection method the system uses to relieve (sell) lots of a security held by the entity. Options include:

• First In First Out (FIFO). Lots acquired first are sold first. The oldest lot is sold first based on the holding date. If you set the accounting basis Cost Basis Covered Indicator field (tag 2818) to Y, unknown cost lots are relieved first. The oldest cost lot is sold first based on the holding date.
• Last In First Out (LIFO). Lots acquired last are sold first. The most recent lot is sold first based on the holding date. If multiple lots share the same holding date, the lot with the greatest event sequence is relieved first. The event sequence, set internally by the system, indicates the processing order of transactions within the same position.
• High Amortized Cost or High Cost (HCLOT). The lots with the highest current cost are sold first. The system uses current unit cost, which includes amortization for debt securities. This method relieves the lots that can generate the maximum loss or the minimal gain.
• Low Amortized Cost or Low Cost (LCLOT). The lots with the lowest current cost are sold first. The system uses current unit cost, which includes amortization for debt securities. This method relieves the lots that can generate the minimal loss or the maximum gain.
• High Original Cost (HORIG). The lots with the highest original cost are sold first. The system uses the original unit base cost of the open lots. It relieves the lots that can generate the maximum loss or the minimal gain.
• Low Original Cost (LORIG). The lots with the lowest original cost are sold first. The system uses the original unit base cost of the open lots. It relieves the lots that can generate the minimal loss or the maximum gain.
• Identified Lot (IDLOT). The specified lot or lots are sold first, which determines cost and tax implications. You can optimize this option to specific tax situations by selecting the specific lots to be sold. If you select this method, the lower pane in the close trade panel displays lot details for each available lot, as determined by the entity's controlling basis. If no controlling basis exists, it displays lots for the primary basis. You must specify the quantity for one or more lots that you want to relieve. The total quantity you specify for the open lots must match the quantity entered for the total close. The close trade relieves the selected lots in each of the entity's accounting bases, and keeps the lot structures in sync. The system uses the lot's Orig Event ID field (tag 457) to match a single open lot in one basis to corresponding multiple open lots in another basis, as needed. This can occur for lots fractured as a result of wash sale processing.
• Best Tax. The lots are selected and sold with the objective of taking losses first (short term then long term) and gains last (long term then short term). Lots are sold in the following order:
  1. Short term Losses. Lots that reflect a short term loss are sold first, beginning with lots that generate the greatest short term loss down to the least short term loss.
  2. Long term Losses. Lots that reflect a long term loss are sold, beginning with lots that generate the greatest long term loss down to the least long term loss.
  3. Short term No Gains or Losses. Short term lots that reflect no gain or loss.
  4. Long term No Gains or Losses. Long term lots that reflect no gain or loss.
  5. Long Term Gains. Lots that reflect a long term gain, beginning with lots that generate the least long term gain up to the greatest long term gain.
  6. Short Term Gains. Lots that reflect a short term gain, beginning with lots that generate the least short term gain up to the greatest short term gain.
• Tax Advantage (TXADV). The lots with the lowest tax liability are sold first to minimize tax liability.
• Versus Purchases (VSP). The lots are selected and sold based on lot purchase characteristics, such as the target purchase date and the target purchase price. This option must be specified at the trade level.
• Pro Rata. The lots are selected and sold based on a proportionate allocation. Note that this option is available at the mixed cost basis rule detail level but is not available at the entity/basis level.
• Tax Efficiency. The lots with the lowest tax liability are sold first to minimize tax liability. The system calculates the tax liability based on the manipulation of entity level tax factors for long and short term gains, long and short term losses, and currency gains. The system also incorporates the wash sale disallowance effect and considers the overall tax implications of closing each individual lot.
• Modified FIFO (MFIFO). The open lots with the same original acquisition date (tag 216) as the close transaction are sold first, starting with the lots with the lowest unit cost local. If there are no open lots with the same acquisition date as the close transaction, or all same day lots have been sold, the oldest open lots are sold first based on the acquisition date. Within a single acquisition date, the lots with the lowest unit cost local are sold first.

Specifies the cost method the system uses to calculate gain or loss amounts from the sale of foreign currency lots held by the entity. The system bypasses rollback and replay processing for same day cost of cash activity. The system processes open and close trades for the same date in the order in which the trades arrive. As a result, some close trades may be processed prior to open trades. The average cost close trades do not include the cost of open trades that have not been processed. This may result in small variances in gains and losses for entities processing average cash. There is no effect on IDLOT gains and losses. You cannot edit this field once the entity has holdings. Options include:

• Average. The system determines which foreign currency lot to relieve (sell) based on the value in the Lot Selection Method Cash field, which is always FIFO. After identifying the lot, the system determines the average of all of the holdings (total cost of holdings divided by the number of holdings) to calculate a gain or loss amount for reporting purposes.
• Identified. The system determines which foreign currency lot to relieve (sell) based on the value in the Lot Selection Method Cash field, which is always FIFO. After identifying the lot, the system determines its cost and compares that to the lot's earnings to calculate a gain or loss amount for reporting purposes.

Specifies the settlement date the system uses when contractually settling trades and/or income. Options include:

• Contractual Settlement Date. The system settles the trades and/or income on the contractual settlement date.
• Contractual Settlement Date plus 1 Day. The system settles the trades and/or income items on the contractual settlement date plus one day.

Specifies the name of the Contract Cash Settlement Rule that the system uses to determine whether to settle trades through the contract cash process, based on the processing security type or security. You can add your own custom rules or you can select one of the default contract cash rules shown below.

• DEFAULTTRDINC. Settle both transactions and income for trades and corporate actions.
• DEFAULTTRDINCNOCA. Settle both transactions and income for trades but not for corporate actions.
• DEFAULTTRDONLY. Settle transactions, but not income, for trades and corporate actions.
• DEFAULTTRDONLYNOCA. Settle transactions, but not income, for trades but not corporate actions.
• DEFAULTINCONLY. Settle only income for transactions such as coupons and corporate actions.
• DEFAULTINCONLYNOCA. Settle only income for transactions such as coupons but not corporate actions.
• DEFAULTNONE. Settle neither transactions nor income for trades or corporate actions.

Indicates whether the system settles trades, coupons, and miscellaneous income and expenses automatically. Options include:

• No. Default. The system does not automatically settle trades, coupons, and miscellaneous income and expenses. You must schedule the settlement for these transactions using the global Run Contract Cash panel. Or, manually settle the transactions using the Run Multiple Settlements panel. Eagle recommends that you set this field to No.
• Yes. The system automatically settles trades, coupons, and miscellaneous income and expenses. If you enter Yes, the system creates a settlement as soon as the trade is processed. There is no trade to settle date gain/loss. This applies even if the settlement date is in the future.

Indicates whether the entity can go technically short (book sell transactions prior to buys that will eventually be posted). Options include:

• Yes. Default. The system allows you to oversell, sell without a buy, and process a buy to cover without the short. Setting this field to Yes allows you to use the rollback and replay feature in Eagle's Accounting solution to adjust earnings. The system creates a negative long position (for an oversell or sell without a buy) or a negative short position (for a buy to cover without the short) and when the buy is received, the system replays that sell transaction. If you enter Yes, the system creates a settlement as soon as the trade is processed. There is no trade date to settle date gain/loss. This applies even if the settlement date is in the future.
• No. Recommended. The system does not allow you to oversell, sell without a buy, or process a buy to cover without the short. The system rejects the trade and sends it to the Exceptions workspace to be reprocessed manually.

 Indicates whether the system can apply the wash sale rule to trades. Options include:

• Yes. Default. The system does not apply the wash sale rule. The system records a loss on a sale of a security when you buy substantially identical securities within 30 days before or after the sale. If you select Yes, the system does not process wash sales, regardless of the value you specify for the Wash Sale Eligible Flag field on a trade panel.
• No. The system applies the wash sale rule. The system does not record a loss on a sale of a security when you buy substantially identical securities within 30 days before or after the sale. If you select No, the system uses the value you specify for the Wash Sale Eligible Flag field on the trade panel to determine whether to process wash sales.

Indicates whether the entity/accounting basis calculates the holding term for short term versus cash equivalent holdings at 90 days or at 3 months. If you use ledger granularity rules to customize your core ledger posting for a breakout by holding term, this option determines how Eagle Accounting calculates that holding term. This field appears after you select a ledger granularity rule. Options include:

•  90 Days. When you use the system to calculate the holding term, it designates lots bought within 90 days to maturity as cash equivalent (CE) and designates lots bought within one year to maturity, taking leap years into account, as short term (ST).
• 3 Months. Default. When you use the system to calculate the holding term, it designates lots bought within three months to maturity as cash equivalent (CE) and designates lots bought within one year to maturity, taking leap years into account, as short term (ST).

Specifies how the system prices short term debt instruments. The system identifies a short term fixed income security if the period from Issue Date to Maturity Date is less than or equal to 365 days; it does not do so by Processing Security Type. Options include:

• Market. Default. The system prices the short term debt instruments using market prices rather than the amortized cost of the securities. Unrealized gain/loss entries are created.
• Cost. The system prices the short term debt instruments based on the amortized cost of the securities. No unrealized gain/loss entries are created. You must select a value of Cost if you are processing short term discount accruals.

Specifies the number of accounting periods per calendar year for the entity. You cannot edit this field once the entity has holdings. Options include:

• Daily. Default. The system establishes one accounting period for each day of the year. If the entity is using a business calendar, the system establishes an accounting period for business days only.
• Monthly. The system establishes twelve accounting periods for a given year.
• Weekly. The system establishes one accounting period for each week of the year.

Specifies how the system processes accrued interest on bonds or other fixed income securities on non-business days. This option appears when you select a value for the Calendar Name field and is required under that circumstance. Options include:

• Process with Previous Business Day. The system posts non-business day accruals to the previous business day's accounting date. For example, accrued interest for Saturday and Sunday is posted on Friday.
• Process with Next Business Day. The system posts non-business day accruals to the next business day's accounting date. For example, accrued interest for Saturday and Sunday is posted on Monday.

Specifies how the system handles gains and losses on foreign securities and foreign debt instruments. Gains and losses from foreign security and debt instruments may be posted to currency gain/loss ledger accounts, capital gain/loss ledger accounts, or to both. There is no currency gain/loss for domestic securities so you can select No in this field if your organization trades only in domestic securities. Options include:

• No. Default. The system does not bifurcate (split into parts) the gain/loss between capital and currency. The system posts the capital and currency realized gains/losses to the capital realized gain/loss general ledger accounts only.
• All. The system bifurcates (split into parts) the gain/loss between capital and currency regardless of the security type. The system posts the capital realized gains/losses to the capital realized gain/loss general ledger accounts and the currency realized gains/losses to the currency realized gain/loss general ledger accounts.
• Section 988. The system determines whether to bifurcate (split into parts) the gain/loss between capital and currency based on the security type. You need to specify which security types are eligible for section 988 bifurcation using the Codes workspace. If a security is not set up with a processing security type code, it is not eligible for bifurcation under Section 988. In this case, the system posts capital and currency realized gains/losses to the capital realized gain/loss general ledger accounts.

Specifies whether a TBA (to be announced) security functions as a buy or sell or nets the difference. Options include:

• No. Default. Do not create cash flows for the open of the TBA tax lot, but create the net cash flow at the close of the position.
• Yes. Create cash flows for the open of the TBA tax lot.

Specifies whether the system automatically rolls back and replays stale factor trades when performing factor processing. Options include:

• No. Default. Do not cancel and rebook the original trade using the most recent factor.
• Yes. In the month the trade settles, cancel and rebook the original trade using the most recent factor.

Specifies how the system posts interest accruals and dividends for swaps. Options include:

• Income/Expense. The system posts interest accruals and dividends to Income and Expense accounts in the general ledger.
• Unrealized. The system posts interest accruals and dividends to unrealized Capital accounts in the general ledger.

Specifies whether the system spreads expenses over the weekends and holidays. It affects the Average Net Assets report. Options include:

• Calendar. The system spreads expenses over the weekends and holidays.
• Business. The system does not spread expenses over the weekends and holidays.

Enables the use of the QDI Tax Treaty table for securities in the entity. QDI (qualified dividend income) is a category of dividend income that is taxable at lower rates than ordinary income under the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Tax Relief, Unemployment Reauthorization, and Job Creation Act of 2010 extended the QDI expiration date through the end of 2012. QDI is defined as dividends received from domestic corporations and certain foreign corporations. Options include:

• Yes. Dividends with countries populated on the QDI Tax Treaty table are considered QDI eligible and the QDI Eligible Flag field (tag 2905) on the security master file is ignored. To add a country to the QDI Tax Treaty table, use the Create QDI Tax Treaty panel. You can also use the Create QDI Tax Treaty Exclusion panel to exclude specific securities from QDI eligibility.
• No. Default. The entity uses the QDI Eligible Flag field (tag 2905) on the security master file to determine QDI eligibility.

Short Price Source

Valuation FX Source

Specifies the pricing source the system uses for pricing foreign exchange rates for the entity. It is used for valuation; that is, calculating market value. The default is Eagle PACE.

Forward Price Source

MTM Rate Source

Redemption Gain Loss Indicator

• Gain/Loss. Default. The system redeems gains/losses that result from calls, puts, and pre-refund corporate actions.
• Amortize. The system amortizes gains/losses that result from calls, puts, and pre-refund corporate actions. It applies an accelerated amortization method.

Sinking Fund Payment Redemption Gain/Loss Flag

Specifies how the system processes gains and losses for sinking funds. Options include:

• Treat Gain/loss from Sinking Fund Payment as Gain/Loss. Default. The system treats the gain or loss created by the sinking fund payment as a gain/loss on both the subledger and general ledger.
• Treat Gain/loss from Sinking Fund Payment as Accelerated Amortization. The system treats the gain or loss created by the sinking fund payment as accelerated amortization on both the subledger and general ledger.
• Capitalize Sinking Fund Payment. The system uses the sinking fund information in the schedule table to calculate amortization yield. The system also reduces the principal of the tax lot in a non-prorated way when processing the sinking fund payment so that no gain or loss occurs.
• If Pro Rata Sinking Fund Capitalize Else Calculate Gain/Loss. The system looks to the value in the Pro Rata Sinking Fund Flag field specified for the security to determine processing. If the value for that field is set to Yes, the system capitalizes the sinking fund payments for the security. If the value is set to No, the system treats the gain/loss from the sinking fund payment as a gain/loss.
• If Pro Rata Sinking Fund Capitalize Else Calculate Amortization. The system looks to the value in the Pro Rata Sinking Fund Flag field specified for the security to determine processing. If the value for that field is Yes, the system capitalizes the sinking fund payment for the security. If the value is No, the system treats the gain/loss from the sinking fund payment as accelerated amortization for the security.

Short Term Discount Accrual Flag

• Amortize. Default. The system accretes the short-term discount bond and posts the accretion as amortization on the subledger and general ledger.
• Accrue Discount. The system treats the accretion of the short term discount bond as an accrual and posts the accretion as interest income on the general ledger in the accrual fields (Daily, Month to Date, Period to Date, Life To Date). The system also posts the accretion as interest income on the subledger. For the calculation of gain/loss, The system treats the accrual of interest income, like accretion of discount.

Relieves the current holdings of a security for a non primary accounting basis. This field determines processing for the open lots that are eligible to be closed on an additional accounting basis. Options include:

• Use Basis Value Unless Event = IDLOT or VSP. Default. The system uses the value in the accounting basis table unless the incoming event has a lot selection method of Identified Lot (IDLOT) or Versus Purchase (VSP). That is, if the incoming event has a lot selection method of IDLOT or VSP, the system utilizes the IDLOT or VSP lot selection method to close the lots for that particular accounting basis. If the incoming event does not have an IDLOT or VSP lot selection method, the system utilizes the lot selection method on the accounting basis.
• Use Event Value. The system uses the lot selection method from the incoming event and does not utilize the lot selection method in the accounting basis table.
• Always Use Basis Value. The system uses the accounting basis default regardless of what lot selection method is on the incoming event.
• Use Historical Method Unless Event ID = IDLOT or VSP else use event. The system uses the historical lot selection method on the accounting basis unless the lot selection method on the incoming event is equal to Identified Lot (IDLOT) or Versus Purchase (VSP).

Specifies which ledger posting matrix the Entity/Primary Basis uses when determining the accounting ledger postings required for a given event. Options include:

• Core. Default. Used if entity is an investment or mutual fund.
• Insurance. Used if entity is insurance related (Schedule D).

Determines if the entity/primary accounting basis uses a mixed cost basis. A mixed cost basis allows you to override the entity's accounting basis level elections for the cost method, lot selection method, and lot selection rule used during transaction processing. Options include No (Default) and Yes. If you select Yes, the Primary Basis Mixed Cost Basis Rule Name field becomes available.

Specifies the name of the mixed cost basis rule to use for the entity's primary accounting basis. This option appears if you set the Primary Basis Mixed Cost Basis Indicator field to Yes.

Sets the cutoff date for posting transactions. Transactions where the Trade Date field is greater than the cutoff date are not allowed. The system rejects these transactions prior to executing any database reads.

Determines if transaction fees are expensed or capitalized for acquisitions, and if transaction fees are expensed or netted against proceeds for dispositions. This option supports International Financial Reporting Standards (IFRS) requirements for trades and transaction fees. You cannot edit this field once the entity has holdings. The following trade related fees are considered transaction fees: Commission field (tag 47), SEC Fee field (tag 48), Tax field (tag 46), Stamp Duty Tax field (tag 51), Other Fee field (tag 3752). The Federal Tax Withholding field (tag 8078) and State Tax Withholding field (tag 8079) are not considered transaction fees. Options include:

• Capitalize Trans Fees on Opens & Net Trans Fees Against Proceeds on Close
• Expense Trans Fees on Opens & Net Trans Fees Against Proceeds on Closes
• Expense Trans Fees on Open and Close Trades

Controls whether backup withholding is required. TEFRA legislation requires backup withholding for clients that have not provided a taxpayer ID. Options include No (Default) and Yes. If you select Yes, the Backup Withholding Rule Description field value appears.

Identifies the account subject to backup withholding and the dates the restrictions apply. You can use the Create Entity Backup Withholding Rule panel to set up the rule. Once an entity withholding rule has been set up, the system creates a cash disbursement for withholding for any qualifying payments where the trade date of the event falls between the start and stop date on the rule. This field is required if you set the Backup Withholding Indicator field to Yes.

Determines whether a portfolio follows the mandatory reporting guidelines as stored at the accounting basis level. When enabled, the system creates a bifurcated position and determines uncovered/covered statuses for the securities/lots the portfolio holds as new trades are received.

Indicates whether to process book value by component. Options include:

• No. Do not process book value by component.
• Yes. Process book value by splitting the cost of the transaction into two parts: Par and Cash Premium/Discount (CP). CP is the difference between Par and the price paid. Par is booked to cost of investments and CP is booked to an asset CP account. As close transactions are booked, the Par, CP, and any other fees booked are proportionally closed.

Defines the treatment of commissions for securities with variation margin. Options include:

• Expense. The system recognizes expenses for commissions on the opening and closing of contracts with variation margin. The commissions are recognized as a transaction cost rather than netted in the initial recognition of unrealized gains/losses. You can view the transaction fees on the General Ledger report.
• Capitalize. Default. The system nets the initial recognition of unrealized gains/losses on the opening and closing of contracts with variation margin.

Indicates whether unrealized gain/loss is posted for a PIK interest receivable.

Specifies the amortization/accretion rule for the primary accounting basis that the system uses to process earnings. You can set up amortization/accretion rules for IFRS that amortize average cost portfolios on an effective yield basis. If you change the Primary Amortization Rule at the accounting basis level, the next time you process earnings the system creates a retrospective amortization rule calculation from the original settlement date of the trade (on all open lots). The system calculates the trade yield based on the primary amortization/accretion rule for the entity, so it is important to keep the values that exist on the entity and the primary accounting basis consistent. The system updates values changed on the entity panel via the primary accounting basis, but does not change entity values when you make the change through the change accounting basis panel. See the Manage Amortization/Accretion Rules section for more information.

Specifies how the system handles the gain/loss on paydowns (repayment of part of an outstanding loan balance). This field is used with factor based debt instruments such as mortgage backed securities. Options include:

• Gain/Loss. The system generates a gain/loss on a paydown and displays the Paydown Gain Loss Account field.
• Amortization. The system records a gain/loss generated by a paydown as accelerated amortization.

• Realized Gain/Loss. Default. The system treats the portion of a paydown that is the result of a loss (write down) at a price of zero.
• Accelerated Amortization. The system reduces the cost of the position by the total reduction of shares. The offset to cost is accelerated amortization. This field is only allowed if the Gain/Loss on Paydowns field is set to Amortization.
• Share Adjustment. The system treats the portion of paydown that is a result of a loss (write down) as a share adjustment (increase or decrease) and does not adjust cost for the loss portion.

• None. Default. The system does not spread income deferrals.
• Coupon. The system spreads the daily income over the coupon period. This option is used primarily for mutual funds that distribute income daily, for bonds that are set up as 30/360, and for months that do not contain 30 days.
• Monthly. The system spreads daily income over the course of a month. A 30/360 bond defers a portion of its income for the 31st day of the month.

• Yes. Default. The system automatically posts unrealized gains/losses to the ledger during valuation. Select this value only if you are using Eagle's Pricing Center to post unrealized gains/losses.
• No. The system does not automatically post unrealized gains/losses during valuation. You must post them manually.

• Settle Date. Default. The system recognizes closed earnings, amortization, and OID amortization on a daily basis through the settlement date of the close.
• Trade Date. The system recognizes closed earnings, amortization, and OID amortization as one lump sum on the trade date of the close.

• Settlement Date. Default. The system accrues through the day prior to a coupon payment and then begins accruing for the new coupon on the coupon pay date.
• Settlement Date + 1. The system begins earnings accruals using a one day lag. It accrues through the coupon date for the current period and pays it out that day, and then begins accruing for the new coupon on the coupon date plus one day so that the accrued income on the coupon date is zero. This method can apply to countries such as Canada.

Determines whether the system allows no negative income at the entity/basis level for Identified Cost portfolios. This field appears if you set the Cost Method field to a value of Identified. Options include:

• Allow Negative Income. Default. The system recognizes negative income.
• Do Not Allow Negative Income. The system does not recognize negative income. The system uses the following calculation to determine if there is negative income: Total Income LTD = Accrual LTD + Amortization LTD + ILB LTD + OID LTD. If Total Income LTD is less than zero, ILB income, if it exists, and amortization are deferred until Total Income LTD reaches a value of 0 (zero).

Specifies the name of the processing rule to use for the entity and accounting basis. This rule contains securities and the associated security processing rules to be used for accounting processing/treatment.

Indicates whether the accounting basis is using month end processing, which allows transactions to be reported in the correct month end report without having to reopen closed daily valuation and accounting periods. Options include Yes and No. If you select Yes, the Month End Long Price and Month End Short Price fields become available. If you set both this field and the Control Center Entity field to Yes, messages are sent to establish month end accounting periods, which is necessary to view funds in Control Center.

Specifies the target pricing source used for month end valuation of long positions. This field appears when you set the Month End Processing Indicator field to Yes and is required under this circumstance.

• No. Default. The system does not use the STAR to PACE Direct to transfer an entity's open positions and cash balances.
• Yes. The system uses the STAR to PACE Direct to transfer an entity's open positions and cash balances.

Indicates whether the STAR/PACE integration procedure processes cash currency and copies cash flow information for reporting by Eagle's Performance solution. Options include:

• No. Default. The STAR/PACE integration procedure does not create cash currency records for performance reporting. If you do not use Eagle Performance, select No.
• Yes. The STAR/PACE integration procedure creates cash currency records for performance reporting. If you use Eagle Performance, select Yes.

Indicates whether the STAR/PACE integration procedure exports the entity's cash positions from STAR to PACE. Options include:

• No. Default. The STAR/PACE integration procedure does not export cash position records from STAR to PACE. If your organization does not need currency balances, select this value to improve efficiency.
• Yes. The STAR/PACE integration procedure exports the cash position records from STAR to PACE and stores the cash balances in the position detail table in the PACE data warehouse. If you use Eagle Performance, select Yes.

Specifies whether to use the cost value when no price is found for the selected entity/accounting basis. This setting does not affect futures contracts market values. If you run STAR to PACE Direct in Batch mode using the Recent price option (that is, you set the Price Date Switch option to Recent in the Transfer Data - Batch panel), be aware that any recent price is used before the asset is priced at cost. Options include:

• Yes. Use cost value. If no price is found, STAR to PACE Direct defaults the amortized cost into the PACE market value fields in the position detail and lot level position tables.
• No. Do not use cost value. Use the default value of 0. The amortized cost is not used even if there is no pricing available.

Indicates if you can view an entity's status using the Control Center. The Control Center allows you to view entity statuses for all system events in real time. The Control Center provides a central location for applying business edits, reviewing and controlling transactions, and performing valuations and audits of entities. Options include:

• No. Default. The system does not allow you to view the entity status using the Control Center.
• Yes. The system allows you to view the entity status using the Control Center. All edit test procedures check this flag to ensure the fund is set up as a Control Center fund. If you select Yes, additional fields in this section become available.

Specifies the trading gain/loss rule for the entity. The trading gain/loss process determines the impact of a trade by comparing a transaction's trade price to the prior market price. This field is required if you set Control Center Entity to Yes. Options include:

• DEFAULT INCLUDE. Tests new purchases by using the current day market exchange price.
• DEFAULT EXCLUDE. Does not post trading gain/loss for new security purchases.
• DEACTIVATE.

Specifies how you assign edit tests during fund setup. This field appears when you set Control Center Entity to Yes and is required under this circumstance. Options include:

• Core. Attaches out of the box edit tests upon fund setup through the ADD_CC_TEST_FOR_START_ENTITY procedure.
• Non-Core. Adds customized edit tests to funds during the fund setup process.
• None. Assigns edit tests in the module after establishing them. Assigning edit tests at the composite level (not fund level) is easier to maintain.

Indicates whether the system can perform cash sweeps into a short term investment fund (STIF) security for the entity. Options include:

• No. Default. The system does not sweep the entity's uninvested cash balance into a Short Term Investment Fund (STIF) security. If you set the Position Cash Segregation Basis Indicator option to Yes, this option displays a value of No and is locked.
• Yes. The system sweeps the entity's uninvested cash balance into a STIF security. If you select Yes, you must specify values for the Lookup STIF Issue Name and Lookup STIF Asset ID fields. You can sweep cash at the entity level if you do not use cash segregation.

Specifies the amount of the minimum balance needed in order for the system to perform a cash sweep into a STIF for the entity. You must specify a positive number. If you specify a value and the cash balance is positive, the system sweeps cash into a STIF for the entity and creates cash sweep transactions only if the balance is equal to or greater than the minimum balance. If you specify a minimum balance and the cash balance is negative, sweep processing always occurs to cover that negative balance.

Indicates whether the system accrues interest for tax withholding and reclaims. Options include:

• No. The system does not accrue interest for tax withholdings and reclaims on a daily basis. Instead, tax withholdings and reclaims are calculated on the coupon payment date.
• Yes. The system accrues interest for tax withholdings and reclaims on a daily basis. If you select Yes, you cannot set the Tax Accounting Method field to Gross Income because the Gross Income method ignores all withholding tax on dividends and coupons.

Specifies how the system processes tax withholdings and reclaims on dividends and other interest transactions. Options include

• Gross Income Method. Default. The system ignores any withholding tax on dividends or coupon entitlements, even if applicable tax rates are set up in tax tables, and tax reclaim will not process. The gross amount of the dividend or coupon entitlement is posted as a receivable. The receivable is then relieved against the cash receipt on the coupon or dividend pay date. You cannot select this value if you set the Accrue Interest Tax Indicator field (tag 3911) to Yes.
• Gross Liability Method. The system generates both a receivable and a payable amount for the withholding tax. A receivable is created at the gross amount of the dividend or coupon entitlement less the amount of the reclaim. A separate receivable is created for the reclaim amount, if any. A payable is also created for the unrecoverable tax amount (tax expense). The system relieves both the payable and receivable against the cash receipt on the coupon or dividend pay date.
• Net Method. The system generates a receivable at the net income amount (gross income less withholding tax) and a separate receivable for the reclaim amount, if any. The payable for the tax expense is not created.

Determines whether income is posted to taxable or tax exempt general ledger accounts. This field works with the Tax Exempt Indicator field (tag 1545), which exists at the security level. The Tax Exempt Processing Flag field impacts the Net Investment Income (NII) process when calculating the mixed expense taxable allocation percentage. If this field set to Yes, the net distributable income is processed against tax exempt income and expenses. Options include:

• Yes. If the security level Tax Exempt Indicator field is also set to Yes, the system posts the income to tax exempt general ledger accounts. If the security level Tax Exempt Indicator field is set to No, the system posts income to taxable general ledger accounts.
• No. If the security level Tax Exempt Indicator field is set to Yes, the system posts the income to taxable general ledger accounts. If the security level Tax Exempt Indicator field is set to No, the system posts the income to taxable general ledger accounts.

Identifies the cost allocation for rights issues. If you do not select a value, the system uses Allocate Cost as the default. Options include:

• Allocate Cost. Default. The system allocates a percentage of the cost of the original security to the rights issue.
• Do Not Allocate Cost. The system does not allocate a percentage of the cost of the original security to the rights issue.
• Calculate 15 Rule. The system determines whether to allocate cost to the rights issue based on the market value. If the market value of the rights issue is more than 15% of the cost of the original security, the cost is allocated to the rights issue. If the market value of the rights issue is less than 15% of the cost of the original security, the cost is not allocated to the rights issue.

Specifies how the system treats fractional shares. A fractional share is less than a single share of stock. It often results from stock splits, stock dividends and similar corporate action events. The value in this field overrides the fractional shares value on corporate action announcement panels. Options include:

• Round Down. The system rounds the fractional share entitlement down to zero decimals. No fractional shares are created.
• Post Fractional Shares. The system posts the fractional share entitlement, calculating the amount to two decimal places.
• Round Up. The system rounds the fractional share entitlement up to the next whole number. No fractional shares are created.
• European. The system calculates the fractional share entitlement as follows: 1. Divides the position by the divisor, 2. Drops the decimals on the number that is calculated, 3. Multiplies the whole number by the multiplier.
• Round to Nearest Whole Share. The system rounds the fractional shares to the nearest number of whole shares. If the calculated entitlement is greater than or equal to 0.50, the system rounds the fractional shares up to the next whole share. If the calculated entitlement is less than or equal to 0.49, the system drops the fractional shares.

• Recent. The system uses the trade date exchange rate if available. Otherwise, it uses the most recent exchange rate.
• Actual. The system retrieves only the exchange rate for the trade date. It rejects the transaction if no exchange rate is found.

Specifies how the system handles the treatment of loss generated by the expiration of a right or warrant. Options include:

• Loss. Default. The system applies the loss generated by the expiration of a right or warrant to the right or warrant.
• Transfer. The system applies the loss generated by the expiration of a right or warrant to the original security.

Specifies whether to use lots or positions to determine cash entitlements for cash dividends. Options include:

• Position. Default. The system uses positions to determine cash entitlements for cash dividends.
• Lot. Default. The system uses lots to determine cash entitlements for cash dividends.

Specifies the method to use to close lots on the original security for non-taxable mergers. Options include:

• Pro-Rata Method. Default. The system closes a portion of all lots, ignoring lot selection methods.
• Lot Selection Method. The system selects lots to close based on the lot selection method found on the accounting basis.

Determines if gain loss processing occurs for corporate actions for certain cash/stock mergers. Requires the Limit Gain Loss Indicator field (tag 8553) to be set to Yes on the corporate actions panel to be in effect. When applicable, at the lot level, the gain associated with these mergers is the lesser of the cash amount or the gain to be recognized had the entire transaction been taxable. If the result is a loss, it is disallowed. The disallowed component is then treated as a return of capital. In the case of certain taxable mergers, any loss that is generated at the lot level is disallowed. There are U.S. tax provisions that limit the amount of reportable gains and losses for certain mergers with taxable components. Options include:

• No. No gain loss processing for corporate actions.
• Yes. Gain loss processing occurs for nontaxable mergers with taxable cash. For taxable mergers, gain/loss rules are used for the calculation of losses only.

Indicates whether the system performs cash suspense processing. Cash suspense processing is started when the system attempts to settle transactions that do not match (the system cannot find a receivable or payable to settle). Options include:

• Yes. The system performs cash suspense processing. If the transaction is not found, it posts an entry to the cash suspense account. If you select Yes, the Replay Suspense Activity field becomes available.
• No. The system does not perform cash suspense processing. It flags the unmatched transactions as errors and sends them to the Exceptions workspace for review

In order to use period close rules, you must set up the Accounting Period Rule field (tag 2300) for each entity. The system uses the entity's Accounting Period Rule field in order to assign the accounting date for a transaction during processing. It also derives the accounting date based on the transaction's effective date (trade date) and based on the accounting period that is open at time of processing. Options include:

• Trade Date. Default. When the system assigns the accounting date for the entity's transactions, the accounting date is equal to the effective date (trade date) of the transaction if the accounting period is open. Otherwise, the system uses the latest open accounting period.
• Trade Date + 1 Business Day. Also called T + 1. When the system assigns the accounting date for the entity's transactions and the accounting period is open, it uses the period close rules to verify whether the processing event is eligible for an accounting date that occurs one business day after the trade date. For processing events included in the period close rules, it uses T + 1 to assign the accounting date, using the effective date plus one business to assign the accounting date. For processing events excluded from the period close rules, it uses the effective date (trade date) of the transaction to assign the accounting date. Otherwise, if the accounting period is not open, the system uses the latest open accounting period.

Indicates whether to use the broker code to distinguish forward contracts made with a different broker but the same two currencies and maturity date. Options include:

• Yes. The system uses the broker code. If the broker is unique on each transaction, the system creates a new security master record for each forward trade with the same sell/buy currency and maturity date.
• No. The system does not use the broker code. The system does not create a new security master record for each forward trade with the same sell/buy currency and maturity date.

Indicates whether the entity allows closes of forward contracts. Options include:

• Yes. The system allows closes of forward contracts prior to maturity. It closes open forward contracts by offsetting forward contracts.
• No. The system holds all forward contracts until maturity. It records separate long and short positions for offsetting forward contracts.

Indicates whether you must add the forward contract to the security master file prior to booking a forward trade. A forward contract is a type of foreign exchange transaction whereby a contract is made to exchange one currency for another at a fixed date in the future at a specified exchange rate. Options include:

• Yes. You must add the forward contract to the security master file prior to booking a forward trade.
• No. You do not need to add the forward contract to the security master file prior to booking a forward trade. The system creates two security master records, one for each leg of the forward contract, when you book the trade.

Indicates whether you can book short future trades. Options include:

• Yes. The system does not allow you to book short future trades. All futures transactions are processed in one net position by the clearing broker.
• No. The system allows you to book short future trades. This value allows an entity to be long and short in one futures position. If this field is set to No, you cannot book open or close short future trades.

Specifies how the system records the futures cost in the general ledger. Options include:

• Core. Default. The system posts a variation margin. No cost is recorded for the future transaction and commission is included as part of the cost and not paid out separately.
• UK. The system posts an unrealized gain loss. The system records the cost of the futures and commissions are paid right away.

Indicates whether you can process write and buy to cover option transactions. Options include Yes and No.

Determines how the system processes caps/floors. Options include:

• Yes. The system nets a buy and sell of a cap/floor on the same entity into a single position.
• No. The system treats a buy and sell of a cap/floor on the same entity as two separate positions.