8. Bond Processing Issues

8. Bond Handling Issues

8A Question: How are bond inflows and outflows handled?

Answer: Purchases or sales of bonds must be processed using manual adjustments. Before making an adjustment, please create the instrument code in the "Private Securities Repository."

(i). On the "Securities Management > Instrument Management > Private Securities Repository" page, click "Add Instrument" to add a bond or foreign equity.

(ii). Fields marked with a red asterisk (*) are required.

(iii). In the action column, click "Basic Market Data" to modify base information, or click "Price Maintenance" to enter prices that will display as the closing price on the statement.

Note: Market, Type, and Security Code cannot be modified.

(iv). To modify market value, click "Add Market Data" on the "Price Maintenance" page.

(v). Enter the code, select the trading date, enter the closing price, and click "Confirm." After adding, you may click "Edit" to correct the closing price.

(vi). After configuring the bond instrument, go to "Assets Account > Manual Adjustment > Bonds" and click "New" to process bond inflows or outflows.

(vii). Fields marked with an asterisk (*) are required. Click "Submit for Review." (Adjustment types: In = Purchase; Out = Sell)

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The initial bond adjustment requires entering the total cost. For example: total transaction amount = $500,000, quantity = 5,000.Enter total cost $500,000; the cost per unit displayed on the statement will be shown as the diluted cost = $100

(viii). The reviewer receives a reminder under "Approval" at the top right; then click "Approve."

(ix). You can view bond inflows on "Assets Account > Account Details > Bonds." Sales will appear as outflows.

8B Question: Why did the bond price not update on the statement?

Answer: You must edit the market price on "Stock Management > Instrument Management > Price Maintenance" for it to be reflected on the statement (see 8B Fig. 1 and Fig. 2).

If no maintenance was done prior to settlement, perform a settlement reversal (no action required on statements, asset classes, or supplementary orders). After adding or editing the market price (see 8B Fig. 3), rerun the end-of-day process to update the closing price.

8B Fig. 1

On the "Price Maintenance" page, click "Add Market Data"

8B Fig. 2

Enter the security code, select the trading date, enter the closing price, and click "Confirm"

8B Fig. 3

If the market price is incorrect, you may click "Edit"

8C Question: How are the cost, price, and position market value on the statement calculated?

Answer: Statement cost is calculated using diluted cost: (Total buy amount − Total sell amount) / Quantity held. The closing price from "Price Maintenance" for bonds is displayed as the price on the statement; the cost is the diluted cost provided above. Position market value equals quantity held × closing price.

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For funds, the closing price is taken from the "NAV Table."

Note: The amount entered in an adjustment is the trade amount. If a total cost is specified in the adjustment, that specified value takes precedence; otherwise the calculation will use the closing price (price × quantity).