Change the Amortization Rule for an Entity
When you change the amortization rule on an existing entity, Eagle Accounting also changes the amortization rule on the entity's primary accounting basis. However, if you change the amortization rule on the primary accounting basis, Eagle Accounting does not update the value on the related entity record.
Therefore, if you want to change the value of the amortization rule on the primary accounting basis, do so by changing the amortization rule at the entity level. If there is a disconnect between these two fields, there can possibly be an incorrect trade yield result when Eagle Accounting does the calculation. If there is a change to the Entity Record/Primary Accounting Basis field, Eagle Accounting recalculates the amortization retrospectively from settlement date.
Define an Amortization Rule When You Create an Accounting Basis
Eagle Accounting allows you to create multiple accounting bases (multiple books). You can apply a different amortization rule for each basis. When earnings are invoked, Eagle Accounting looks to the amortization rules when processing amortization and yield calculations.
When you use the Add a Basis to a Portfolio panel to add an additional accounting basis for an entity or master fund, you can enter a value for the Primary Amortization/Accretion Rule field (tag 3197). This field is located in the Core Accounting Fields area.
Change the Amortization Rule on an Accounting Basis
When you use the Edit a Basis on a Portfolio panel to change an additional accounting basis for an entity or master fund, you can change a value for the Primary Amortization/Accretion Rule field (tag 3197). This field is located in the Core Accounting Fields area.
Be aware that if you change the amortization rule on the primary accounting basis, Eagle Accounting does not update the value on the entity record. Therefore, if you want to change the value of the amortization on the primary accounting basis, do so using the Create/Edit Entity panel or the Edit Master Fund/Sector panel. If there is a disconnect between the entity and primary accounting basis for the primary amortization rule, there could possibly be an incorrect trade yield result when Eagle Accounting calculates the yield.
When changing the amortization rule on an accounting basis, Eagle Accounting recalculates the yield and amortization based on the new amortization rule, and recalculates the amortization retrospectively, from the settlement date of the tax lot.
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