ECM / EAP: Automated Accounting Not Creating Accounting Entries for Deal's Interim Principal Payment Paid Through the Pay Cycle (Doc ID 3015104.1)

Last updated on APRIL 08, 2024

Applies to:

Symptoms

Automated Accounting is not creating accounting entries for a Deal’s Interim Principal Payment that is paid through the Pay Cycle if the Interim Principal Payment has the same Payment Date as another scheduled Interest Payment.

Problem does not occur if the Interim Principal Payment is paid through Financial Gateway. Automated Accounting will create the accounting entries for a Deal’s Interim Principal Payment.

STEPS TO REPLICATE
1. Banking > Bank Accounts > External Accounts > Payment Methods
    a. Bank = USBNK
    b. Bank Account = CHCK
    c. Payment Method = EFT
    d. Settle By = Pay Cycle
    e. Layout = UFF
2. Deal Management > Capture Deals > Deals
    a. Deals > Deal Detail page, add a Deal where the Instrument Type is associated to a Debt
    b. Enter Transactions Date, Settlement Date, Issue Date, and Coupon Start Date = 12/28/2023
    c. Term = 720
    d. Maturity Date = 12/17/2025
    e. Day Count Basis = Actual/360
    f. Discount/Premium = Straightline Method
    g. Deals > Settlement Instructions page, has the following setup:
    h. Our Settle Thru Bank = USBNK
    i. Our Settle Thru Account = CHCK
    j. Payment Method = EFT
    k. Layout = UFF
    l. Deals > Deal Detail page, click Cashflows
3. Deals > Deal Detail page, click Interest Dates link
    a. Interest and Payment Dates page shows 1st Interest Payment with Payment Date of 01/04/2024
    b. Add a Principal Paydown
    c. Payment Type = Paydown
    d. Payment Date = 01/04/2024 (This is the same Payment Date as the 1st Interest Payment)
    e. Principal Amount = 200
    f. Click Add Paydown/Drawdown
    g. Interest and Payment Dates page shows Paydown row added after 1st Interest Payment with Payment Date of 01/04/2024
4. Save the Deal
5. Cash Management > Settlements > Select Settlement
    a. Select Settlements page, specify From Date = 12/28/2023 and To Date = 01/10/2024
    b. Click Search
    c. Check the Select boxes for the two Payments that have Business Date = 01/04/2024
    d. Click Select Payments
    e. Status of Payments change from Unselected to Selected
6. Cash Management > Settlements > Settlement Manager page, click the Approve Settlements link
7. Approvals page
    a. Specify From Date = 12/28/2023 and To Date = 01/10/2024
    b. Click Search
    c. Check the Select boxes for the two Payments that have Business Date = 01/04/2024
    d. Click Approve Payments
    e. Status of the Payments changes from Selected to Approved
8. Accounts Payable > Payments > Pay Cycle Processing > Payment Selection Criteria
    a. Pay the Settlements through the Pay Cycle
    b. Payment Selection Criteria > Source/BU page, specify Source Transaction = TRET (Treasury EFT Settlements) and TR (Treasury Settlements)
    c. Payment Selection Criteria > Bank/Method page, specify Bank = USBNK / Account = CHCK / Payment Method = EFT
    d. Payment Selection Criteria > Dates page, click the Pay Cycle Manager
    e. Run and complete the Pay Cycle
9. Deals > Deal Detail page
    a. Click the Accounting Events link
    b. Treasury Accounting Events page
    c. Event Date = 01/04/2024 shows Interim Principal Payment with Status = Not Processed
10. Cash Management > Treasury Accounting > Automated Accounting
      a. Acctg Events End Date = 01/28/2024
      b. Check box for Deals
      c. Deal ID = Deal ID from Step 2
      d. Run Automated Accounting
11. Cash Management > Treasury Accounting > Accounting Summary
      a. Event ID = Deal ID from Step 2
      b. From Date and To Date = 01/04/2024
      c. Click Search
      d. Accounting Entries for Interim Principal Payment are not generated

Changes

Cause

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