Debt Instrument

The Debt Instrument tab of the Debt transaction records identification, control, and reporting information for one or more debt instruments. The transaction tab is optional as a Debt transaction can create or modify just an Authorization, but once a record is inserted on the Debt Instrument tab, rules for required fields on that tab and the tabs below it are invoked.

The use of any of the generic reporting fields and even some of the specific fields (e.g. Name) for a debt instrument may be standardized for your application, so please consult any available procedures manual.

When a debt transaction has an attachment at the Debt Instrument transaction tab, when that transaction is processed to final, the attachment will be copied to the Debt Instrument Registry page. The attachment can later be viewed or deleted from there.

The Modification transactions have an Auto Apply action available on this tab of the transaction. This action will take the supplied Debt ID and infer all the existing information from the Debt Registry pages to the transaction.

Field Name	Required?	Field Description
Line Number	System Set	Each Debt Instrument record is identified by a system-assigned number starting with 1.
Debt ID	Required	This identification field is always required. When creating a new debt instrument, a value can be manually entered or generated by the application by selecting the Auto Generate ID indication and performing a save.
Auto Generate ID	N/A	A flag that, when checked, indicates to the system that the next number from the applicable Unique Numbering (UNUM) entry should be used. Those entries are: LOAN – for Loans LEAS – for Leases BOND – for Bonds
Debt Instrument Name	Required	Each debt instrument requires a name to be used for identification and reporting purposes that can be up to 60 in length.
Debt Instrument Short Name	Required	Each debt instrument requires a short name to be used for identification and reporting purposes that can be up to 15 in length.
Debt Instrument Status	Required	A status to control system processing, edits, and possibly workflow routing. The Major Type of Debt determines the list of values for this field, and within loans, there are different status values for loans and loan applications. The system treats each respective status in a similar fashion so each is generically described below with the specific values listed. Please refer to the Loan, Lease, and Bond Functionality topics for more details. The choices are: Pre-Active / Started - Default status values indicating the debt instrument has started being defined but has not yet been completed and approved for activation. Loans, Bonds, and Leases have two status choices at this state. Budget and accounting transactions cannot reference the Debt ID and no Debt batch processing will select the debt instrument. Values: Application Started, Loan Started, Loan in Review, Lease Started, Lease in Review, Bond Started, and Bond in Review. Active – The status values that indicate the debt instrument is ready for batch processing as well as budget and accounting references. Values: Application Ready to Loan, Application Loaned, Active Loan, Active Lease, and Active Bond. Completed/Closed – The status values that indicate the debt instrument has either been closed out manually or fully paid. A ‘completed’ status value is set automatically when the last schedule detail record has been processed. A ‘closed’ status value is set manually with a Debt Modification or Debt Status Change transaction. With either of those transactions, there will have to be a manual adjustment to get open account balances closed out too. The exception is the loan application that does no accounting by definition. Values: Declined Application, Loan Completed, Loan Manually Closed, Lease Completed, Lease Manually Closed, Bond Completed, and Bond Manually Closed. Cancelled – This status is used to remove all Debt Instrument Registry records for a debt instrument. When the debt transaction with this status submits to Final, the registry records (but not the history or alerts) will be deleted. Values: Cancelled Application, Loan Cancelled, Lease Cancelled, and Bond Cancelled.
Responsible Department	Required	This Department code is not a key to the Debt ID but rather used to define what Department is responsible for the Debt Instrument. The field can also be used with the row-filtering feature of security to limit with Debt Instruments a user can view or update. When left blank the field defaults to the value entered as the Transaction Department Code. The value chosen does not have to match that of any of the three COA tabs of the Debt Transaction, however, if using row-filtering security then the values should match or at least be accessible Departments.
Application/Loan Indicator	Required	This important setting is visible only on the loan transactions. The default value is Loan. The choice of Application makes the debt instrument never eligible for selection by a Debt batch process. Those are the only two valid values.
Major Type of Loan	Required	This important setting is visible only on the loan transactions and is inferred from the chosen Debt Type. Valid values are: External Given, External Taken, and Internal. Please see the "Loan Functionality" topic for more details on these choices and what they mean.
Lessor/Lessee Indicator	Required	This important setting is visible only on the lease transactions and is inferred from the chosen Debt Type. Valid values are: Lessor and Lessee. Please see the "Lease Functionality" topic for more details on these choices and what they mean.
Major Type of Lease	Required	This important setting is visible only on the lease transactions and is inferred from the chosen Debt Type. Valid values are: Operating and Capital. Please see the "Lease Functionality" topic for more details on these choices and what they mean.
Major Type of Bond	Required	This important setting is visible only on the bond transactions and is inferred from the chosen Debt Type. Valid values are: Capital Appreciation, Convertible Capital Appreciation, Coupon, Zero Coupon, Variable Rate, Self- Amortizing, and Unspecified. Please see the "Bond Functionality" topic for more details on these choices and what they mean.
Issue Date	Conditionally Required	This date defines the date a debt instrument was issued, signed, official, undertaken, and so forth. It may or may not be the same date the instrument was activated in Advantage. The Issue Date must be equal to or within the Authorization Start and Authorization End range of the parent authorization. The date is required for all types of Debt Instruments except loan applications. If the Application/Loan Indicator is Loan, then the Issue Date for the Loan must fall on or within any Application Good From/To range of the Related Loan Application ID. If the Application/Loan Indicator is Application, then the Issue Date is not allowed. In all other cases, the date is required. Issue Date is used as the beginning date by the Generate Schedule action unless the Schedule Start Date is populated on the Schedule with a later date.
Record Initial Accounting	N/A	When this flag is checked, the Debt Instrument will be selected by all Debt batch processes. If unchecked, the only process that will select the record is the Debt Payment & Billing Chain if the Manual Payments/Billing flag is not also checked.
Principal	Required	Each debt instrument requires a Principal that is greater than $0.00 that will default to the Schedule part of the transaction. The amount of Principal is special for the Capital Appreciation and Convertible Capital Appreciation types of bonds. Please see the "Bond Functionality" topic for more information on this. If the amount of Principal is adjusted on a modification transaction after the initial accounting has been done (automatically or manually) for a debt instrument, then a manual accounting adjustment is required to adjust outstanding balances. The amount of Principal on a debt instrument together with the amount of Principal on all other debt instruments under an authorization cannot exceed the Authorized Amount for that authorization. While principal for loans and bonds is straight forward, the amount for leases can become complex. When the lessor, the amount of principal is the present value of all future payments of principal and interest with any down payment added as present value. When the lessee, the amount of principal is the present value of all minimum lease payments including any certain purchase payment or residual value guarantee.
Principal Scheduled & Paid	System Set	This calculated amount is the sum of Principal Paid on all Schedules flagged as Historical plus the Total Principal of the Schedule flagged as the Selected Schedule. This calculated amount exists to assist with modifications so that you know if changes to the Schedule or Debt Instrument parts of the transaction has removed or added to the original amount of Principal.
Taxable Status	Optional	This is an optional setting only on the bond transactions to indicate the taxable status of a bond.
Insurer	Optional	This is an optional setting only on the bond transactions to indicate the insurer of the bond issue. Valid values come from the NAIC Insurance Code (NAIC) page.
Insurer Name	System Set	The inferred name from the Insurer is displayed only on bond transactions.
Application Good From	Conditionally Required	The date from which a loan application is good from, meaning that a loan created from the application can have an Issue Date on or after this Application Good From date. This date is only shown on the loan transactions, required when the Application/Loan Indicator is Application, and prohibited when that Indicator is Loan.
Application Good To	Optional	The date to which a loan application is good until, meaning that a loan created from the application can have an Issue date on or before this Application Good To Date. If left blank, there is no upper date limit to when the application can be turned into a loan. This date is only shown on the loan transactions, optional when the Application/Loan Indicator is Application, and prohibited when that Indicator is Loan.
Fixed Asset Number	Conditionally Required	Each leased asset can optionally be tied to a Fixed Asset record. That association is made in two parts, starting with Fixed Asset Number. This field is only shown on the lease transactions.
Fixed Asset Component Number	Conditionally Required	Each leased asset can optionally be tied to a Fixed Asset record. That association is made in two parts, ending with Fixed Asset Component Number. This field is only shown on the lease transactions.
Debt Instrument Description	Optional	An optional field to record a short description for a Debt Instrument for reporting and identification purposes.
Debt Instrument Extended Description	Optional	An optional field to record a long description for a Debt Instrument for reporting and identification purposes.
Denomination	Required	This is a required definition of the denomination of the bonds in a bond issue. The field is only visible on the bond transactions and will be used by the transactions in calculations.
Number of Bonds Issued	Required	This is a required number of individual bonds in a bond issue. The field is only visible on the bond transactions and will be used by the transactions in calculations.
Rating	Optional	This is optional information for a bond issue where you enter the given rating for the bond issue from one of the rating agencies. The field is only displayed on the bond transactions. The Standard and Poor's values are delivered but may be replaced with other values for your site.
Bond Status	Required	The Bond Status field allows you to define a status level below that of the Debt Instrument Status for Bonds for informational purposes. The field is only displayed on the bond transactions. In Progress – This is the default value that is associated with a bond from the time it is started until a user or the system changes the value. This value is used in all Debt Instrument Status values up to Active Bond. Paid at Maturity – This is the value that the registry sets the field to upon the closing of the final Schedule Detail record in the Selected Schedule that does not contain a Refunding Payment record. The Debt Instrument Status is most likely to be Bond Completed. Called – This value should be used when a call option is exercised and the Debt Instrument Status is Bond Manually Completed. Special Redemption – This value should be used when a bond is redeemed other than with a call and the Debt Instrument Status is Bond Manually Completed. Refunded – This value should be used in all refunding scenarios and with the Debt Instrument Status of Active Bond or Bond Manually Completed. Defaulted – This value should be used when a bond is defaulted and the Debt Instrument Status is Bond Manually Completed.
Contact Code Contact Email Address Phone	Conditionally Required	An optional field to record a Contact Code for a Debt Instrument. The field can be required per Transaction Control (DCTRL) setup.
Debt Type Debt Type Name	Required	Most times the same Debt Type is used on the parent Authorization and all Debt Instrument children. In cases where a debt instrument varies from the authorization, a warning is issued. Debt Types are set up on the Debt Type page with all the major characteristics necessary for the proper accounting treatment and system editing. Debt Type can also be used to group Debt Instruments for reporting purposes or workflow. Once established for a Debt Instrument, the Debt Type cannot be changed unless the Debt Instrument Status is not yet Active. Changing the Debt Type may result in previously entered data being prohibited so that it has to be deleted.
Debt Class Debt Class Name	Optional	An optional rollup to record information about a Debt Instrument for reporting purposes.
Debt Category Debt Category Name	Optional	An optional rollup to record information about a Debt Instrument for reporting purposes.
Debt Group Debt Group Name	Optional	An optional rollup to record information about a Debt Instrument for reporting purposes.
Source of Funds Source of Funds Name	Optional	An optional rollup to record information about a Debt Instrument for reporting purposes.
Reporting Field 1--5	Optional	An optional field to record a short reporting description for a Debt Instrument. A pick is supplied to choose from values already recorded for Debt Instruments of the same Major Type of Debt.
External Tracking Field 1-3 Name	System Set	When the selected Debt Type for a Debt Instrument has a value defined in the External Tracking Field 1-3 Name, that name is inferred to this field to do two things: Alert the user that the External Tracking Field 1-3 is required Tell the user what data is expected in that field.
External Tracking Field 1-3	Conditionally Required	A field that is required by Debt Type setup. Please see the information given in the External Tracking Field 1-3 Name for what data is expected of you.
Related Debt Instrument 1-5 Related Debt Instrument 1-5 Name	Optional	An optional field to record the Debt ID for another Debt Instrument that is related to the current one in some fashion. The information is only for reporting purposes.
Debt Instrument 1-5 Relationship	Optional	An optional field for describing how the two Debt Instruments are related to one another.