R12: XTR: Unable To Call Bonds And Generate Proper Journal Entries, JEA setups for REPURCHASE (Doc ID 2596651.1)

Last updated on MARCH 23, 2023

Applies to:

Symptoms

Company: A, Issue a Bond in 2011 that matures in 2020 on premium of x%.
They created Fixed Income security deal with: No Revaluation: n1 and paying to their Investors coupons on a regular basis.
Now they decide to retire this Bond and hence

ACTIONS: Issue Deals for Repurchase
1. Against Fixed Income security deal: n1, with the Face Value
2. Creates a Fixed Income Security deal n2 that has settlement date earlier than maturity date to settle and complete.
Parameters:
Clean Price: 100/100
Accrued price: Calculated value
Total Price Defaults as: 100
Yield Rate: defaults:
Consideration is same as Face Value
3. When User Run accounting
4. Two sets of accrual Accounting Journals gets created:
- For N1 and also for N2 and it goes on till Maturity date.?
5. Expectation is that:
a. For N1: Only last Journal to be created and
b. For N2 also Last Journal for this month should be created.
6. Please clarify the functionality and expectations?

Changes

Cause

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