About Entity Setup for Calls, Puts, and Pre-Refunds

Owned by Nancy Cohn (Deactivated)
Last updated: Feb 16, 2024 by Kinga Huszno
2 min read

Before you process call, put, and pre-refund corporate actions, set up the following related entity and accounting basis level options.

Specify How to Process Gains/Losses

Before you process call, put, and pre-refund corporate actions, ensure you set up the following related entity and accounting basis level option.

Redemption Gain Loss Indicator (tag 8916). Indicates whether the system processes gains/losses on calls, puts, and pre-refund corporate actions for the entity/accounting basis. This option is required if you process debt instruments. Options include:

  • 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.

If a security is processing a Call/Put/Pre-Refund transaction, and you do not have amortization applied for that position, Eagle Accounting treats the gain/loss from a Call/Put/Pre-Refund transaction as Gain/Loss. Eagle Accounting recognizes Call/Put and Refund transactions by the CA_CASH_CLOSE event type.

Specify How to Relieve Lots for Corporate Action Transactions

Before you process call, put, and pre-refund corporate actions, ensure you set up the following entity level option.

Calls,Puts,Refunds,Principal Repay,Cash Tender Prorata Close Flag (tag 17388). Specifies how the system processes CA_CASH_CLOSE events that affect Calls, Puts, Refunds, Principal Repayments, and Cash Tender corporate actions for the entity or share class. Determines whether the system relieves lots on a prorata basis or based on lot selection method. Options include:

  • Yes. The system processes cash close events for Calls, Puts, Refunds, Principal Repayments, and Cash Tender corporate actions on a prorata basis.

  • No. Default. The system processes cash close events for Calls, Puts, Refunds, Principal Repayments, and Cash Tender corporate actions based on the entity Lot Selection Method (LSM).