Debt Type

The Debt Type (DEBTTYPE) page allows you to establish Debt Types that must be assigned to debt authorizations and debt instruments. A Debt Type not only provides classification for reporting and workflow purposes but it provides all major characteristics necessary for proper accounting treatment and Debt Transaction editing.

Each Debt Type record must be assigned to one of the three values in the Major Type of Debt field. This assignment allows transactions in Debt Management to present (and edit) only Debt Type values that match the Major Type of Debt of the transaction.

Data has been delivered for only this reference page. That data has a minimum number of records to allow each Major Type of Debt and the various sub types under each. Implementation can choose to use that set and have another rollup represent things such as General Obligation Bonds, Low Income Housing Loans, and Real Property Leases. Alternatively, the delivered Debt Types can be copied to create additional records to meet reporting and accounting needs.

Delivered debt types do not have any of the Other Amounts set up for additional payments or billings. Such setup is site-specific. The AP01 (Authorize Normal Payment) and AR01 (Bill Earned Revenue) will work for such an Other Amount.

Field Name	Field Description
Major Type of Debt	A required choice to associate a debt type with one of the three choices: Loan, Lease, or Bond.
Debt Type	A required unique identification of a debt type.
Name	A required text field for assigning a name to a debt type code for identification and reporting purposes.
Short Name	A required short text field for assigning short name to a debt type code for identification and reporting purposes.
Description	An optional long text field for defining additional information about a debt type for identification and reporting purposes.
External Tracking Field 1-3 Name	Three optional fields that allows you to indicate a name/description for a type of data that should be captured in the External Tracking Field 1- 3 (transaction data entry field) on the Debt transaction. The information tracked does not have to be external as the name implies. It can be used to collect just about any type of information that will fit in the transaction field. It should be used when pre-defined values are not a requirement. If the name is populated for the selected Debt Type of a debt instrument, then the name entered on the Debt Type page is displayed above the External Tracking Field 1 - 3 on the Debt transaction so the user knows what type of information should be captured in the data entry field. When the External Tracking Field 1-3 Name is populated for a Debt Type, it makes the External Tracking Field 1-3 on the Debt transaction required for debt instruments with that Debt Type. If the name field is left blank on Debt Type, the External Tracking Field 1-3 is optional for the debt instrument and will not have an inferred value for External Tracking Field 1 Name. What type of information is captured in this field is up to you. Keep in mind there is no format editing for dates, percentages, or currency. The field has a length of 60. Where possible, work valid values into the field such as Y/N, (1 to 5), and so forth. Be aware that if you populate this field after the Debt Type has been used to create a debt instrument, a subsequent modification of that debt instrument will require a value for the field.
Major Type of Loan	A required choice to associate a debt type with one of the three choices: Internal, External Given or External Taken. This value will infer to the loan transactions to control what transaction tabs are required and prohibited.
Loan Authorization Event Type	An optional event type to record an ‘authorized but unissued loan authorization amount’ with the Initial Debt Accounting Chain. When populated on Debt Type, the Loan Setup (LOANS) transaction will infer the event type and automatically check the Generate Authorization Accounting flag.
Principal Payout Event Type	An optional event type to record the payable for principal to an external borrower or the internal loan exchange with the Initial Debt Accounting Chain. If left blank, the chain will not make the initial principal transfer. A value is not allowed when the Major Type of Loan is External Taken.
Repayment of Principal Event Type	An optional event type to record the payable for repayment of principal to an external lender or internal lender. It is also used to record the receivable to an external borrower with the Debt Payment & Billing Chain. A value has to be supplied if using that chain and payments and billings are not suppressed with the Manual Payments/Billing flag being checked or the Bill Principal flag being unchecked for the selected schedule.
Repayment of Interest Event Type	An optional event type to record the payable for repayment of interest to an external lender or internal lender. It is also used to record the receivable to an external borrower with the Debt Payment & Billing Chain. A value has to be supplied if using that chain and payments and billings are not suppressed with the Manual Payments/Billing flag being checked or the Bill Interest flag being unchecked for the selected schedule. If the debt type never has interest (a feature available for loans), the field can be left blank.
Principal Accrual Event Type	A conditionally required and prohibited event type to record the principal being accrued and then reversed by the Periodic Debt Accounting Chain. When the Interest Accrual Event Type is populated and the Major Type of Loan is External Given or Internal, then the Principal Accrual Event Type must also be populated. When the Major Type of Loan is External Taken, the Principal Accrual Event Type must be blank because it is not used and should not give the user the impression it will be. The Principal Accrual Event Type is not allowed because principal payments are balance sheet only transactions for that type of loan.
Interest Accrual Event Type	An optional event type to record interest being accrued and then reversed by the Periodic Debt Accounting Chain. Leaving the field blank will result in all loans for the debt type to be skipped by the chain. Even if debt instruments of a debt type will never have interest, this field has to be completed in order to accrue principal amounts.
Initial Loan Accounting – Current Year Event Type	A required event type to record the current portion of payable or receivable for a loan with the Initial Debt Accounting Chain and with the Long Term Account Reclass Chain.
Initial Loan Accounting – Long Term Event Type	A required event type to record the long term portion of payable or receivable for a loan with the Initial Debt Accounting Chain and with the Long Term Account Reclass Chain.
Initial Other Amount 1-5 Event Type	An event type that is only required when amortizing costs and it is necessary to set up accounts initially for the loan for amortizing over the life of the loan. If not using the Other Amount (Schedule Generation Action is set to Not Used, Do Not Include in Generated Schedule, or left blank), then the event type can be left blank. This event type is not allowed if the Schedule Generation Action is one of the ‘payment’ choices.
Other Amount 1-5 Event Type	An optional event type field that is left blank unless the Other Amount can be used to record one of the following: When there is an additional cost, such as an escrow or fee that has to be paid or billed. When there is a cost being amortized. By specifying a value, you are indicating that loans with this Debt Type can record the Other Amount. A Schedule Generation Action of any value other than Not Used makes the Other Amount Event Type required. The Other Amount Name field is required if this event type field is populated to give meaning to the Other Amount on the Loan Setup and Loan Modification transactions.
Other Amount 1-5 Name	A conditionally required descriptive field that is inferred to loan transactions to inform the user what the Other Amount can be used for. A value is required in this name field if the Other Amount Event Type is populated. A value should not be entered if the Other Amount 1 is not being used as that would cause confusion during transaction data entry.
Schedule Generation Action 1-5	The optional Schedule Generation Action field serves two different functions. First, when set to one of the ‘payment’ or ‘amortization’ values the Other Amount Name and Other Amount Event Type are required. Secondly, the selection instructs the Generation Schedule action on how to treat the Other Amount field when creating schedule details. Valid values include: Not Used – The Schedule Generation action will not place the Other Amount on any record. This choice will not allow event type fields for the other amount to be populated, thus preventing transactions from having an amount entered for the other amount. Repeat on Every Payment – The Generate Schedule action will place the Other Amount on all Schedule Detail records with a Schedule Detail Type of Regular Payment (and Down Payment if a lease). With this choice, the Other Amount is considered an additional payment amount besides principal and interest. Record on First Payment Only – The Generate Schedule action will place the Other Amount on the first Schedule Detail record with a Schedule Detail Type of Regular Payment (or Down Payment if a lease). With this choice, the Other Amount is considered a one-time payment. Record on Last Payment Only – The Generate Schedule action will place the Other Amount on the last payment Schedule Detail record with a Schedule Detail Type of Regular Payment. With this choice, the Other Amount is considered a one-time payment. Split Evenly Across All Payments – The Generate Schedule action will divide the Other Amount by the total number of payment Schedule Detail records (Down Payment or Regular Payment). The resulting amount will be placed on every Schedule Detail record that is a payment with the last record receiving any rounding amount. With this choice, the Other Amount is considered a payment made with each principal and interest payment. Amortize - Straight Line – The Generate Schedule action will create amortization Schedule Detail records by dividing the Other Amount by the total number of amortizations. The resulting amount will be placed on every amortization Schedule Detail record with the last record receiving any rounding amount. As the name implies, this choice makes the Other Amount an amortization and not a payment. Amortize - Constant Yield – A choice that should only be used with Bonds that have a discount or premium so that the Yield to Maturity rate (YTM) is different than the stated rate of interest. The Generate Schedule action will create amortization Schedule Detail records amortizing the discount at a rate that is the difference between interest calculated with the YTM rate and the stated interest rate. Do Not Include in Generated Schedule – The Schedule Generation action will not place the Other Amount on any records.
Major Type of Bond	A required choice to associate a debt type with one of the seven choices: Coupon, Zero Coupon, Capital Appreciation, Convertible Capital Appreciation, Variable Rate, Self Amortizing, or Unspecified. This value will infer to the bond transactions to control what transaction tabs are required and prohibited.
Bond Authorization Event Type	An optional event type to record an ‘authorized but unissued bond authorization amount’ with the Initial Debt Accounting Chain. When populated on Debt Type, the Bond Setup transaction will infer the event type and automatically check the Generate Authorization Accounting flag.
Repayment of Principal Event Type	An optional event type to record the payable for principal to the bond agent with the Debt Payment & Billing Chain. A value has to be supplied if using that chain and payments and billings are not suppressed with the Manual Payments/Billing flag being checked or the Bill Principal flag being unchecked for the selected schedule.
Repayment of Interest Event Type	An optional event type to record the payable for interest to the bond agent with the Debt Payment & Billing Chain. A value has to be supplied if using that chain and payments and billings are not suppressed with the Manual Payments/Billing flag being checked or the Bill Interest flag being unchecked for the selected schedule.
Repayment of Purchased Interest Event Type	An optional event type to record the payable for purchased interest to the bond agent with the Debt Payment & Billing Chain. A value has to be supplied if using that chain and payments and billings are not suppressed with the Manual Payments/Billing flag being checked or the Bill Interest flag being unchecked for the selected schedule.
Compounding Interest Event Type	An optional event type to record the accrual for compounding interest with the Periodic Debt Accounting Chain. Leaving this event type field blank prohibits the creation of a Schedule Detail with the Compounding Interest value for Schedule Detail Type on bond transactions for a Debt Type. A value has to be supplied if using the Principal in Last Payment w/Compound Interest value for Schedule Type. This choice if a common one for Zero Coupon, Capital Appreciation, and Convertible Capital Appreciation bonds.
Principal Accrual Event Type	An optional event type to record the principal being accrued and then reversed by the Periodic Debt Accounting Chain.
Interest Accrual Event Type	An optional event type to record interest being accrued and then reversed by the Periodic Debt Accounting Chain. Leaving the field blank will result in all Bonds for the debt type to be skipped by the chain. Even if debt instruments of a debt type will never have interest, this field has to be completed in order to accrue principal amounts.
Initial Accounting – Current Year Event Type	A required event type to record the current portion of payable for a bond with the Initial Debt Accounting Chain and with the Long Term Account Reclass Chain.
Initial Accounting – Long Term Event Type	A required event type to record the long term portion of payable for a bond with the Initial Debt Accounting Chain and with the Long Term Account Reclass Chain.
Purchased Interest Event Type	An optional event type to record the amount of purchased interest by bondholders by the Initial Debt Accounting Chain. Leaving this event type field blank prohibits the creation of a Schedule Detail with the Purchased Interest value for Schedule Detail Type on lease transactions for a Debt Type.
Bond Proceeds Event Type	A required event type to record the proceeds from the sale of a bond issue by the Initial Debt Accounting Chain.
Initial Other Amount 1-5 Event Type	An event type that is only required when amortizing costs and it is necessary to set up accounts initially for the Bond for amortizing over the life of the Bond. If not using the Other Amount (Schedule Generation Action is set to Not Used, Do Not Include in Generated Schedule, or left blank), then the event type can be left blank.
Other Amount 1-5 Event Type	An optional field to indicate that Bonds with this Debt Type can record the Other Amount. A Schedule Generation Action of any value other than Not Used makes Other Amount Event Type required.
Other Amount 1-5 Name	Unlike Loans and Leases, three other amounts have pre-defined uses: Other Amount 1 - Original Issue Discount. Other Amount 2 - Original Issue Premium Other Amount 3 - Bond Issue Costs Other Amounts 4 and 5 are open to any amortization needs.
Schedule Generation Action 1	The optional Schedule Generation Action field serves two different functions. First, when set to one of the ‘payment’ or ‘amortization’ values the Other Amount Name and Other Amount Event Type are required. Secondly, the selection instructs the Generation Schedule action on how to treat the Other Amount field when creating schedule details. Valid values are limited to just the following choices for bonds: Not Used – The Schedule Generation action will not place the Other Amount on any record. This choice will not allow event type fields for the other amount to be populated, thus preventing transactions from having an amount entered for the other amount. Amortize - Straight Line – The Generate Schedule action will create amortization Schedule Detail records by dividing the Other Amount by the total number of amortizations. The resulting amount will be placed on every amortization Schedule Detail record with the last record receiving any rounding amount. As the name implies, this choice makes the Other Amount an amortization and not a payment. Amortize - Constant Yield – A choice that should only be used with Bonds that have a discount or premium so that the Yield to Maturity rate (YTM) is different than the stated rate of interest. The Generate Schedule action will create amortization Schedule Detail records amortizing the discount at a rate that is the difference between interest calculated with the YTM rate and the stated interest rate. Do Not Include in Generated Schedule – The Schedule Generation action will not place the Other Amount on any records.
Major Type of Lease	A required choice to associate a debt type with one of the two choices: Capital or Operating. This value will infer to the lease transactions to control what transaction information is required and prohibited.
Lessor/Lessee Indicator	A required choice to associate a debt type with one of the two choices: Lessor or Lessee. This value will infer to the lease transactions to control what transaction tabs are required and prohibited.
Include Interest in Initial Accounting	When the interest of a lease as the lessor should not be recorded as deferred revenue or a receivable (current GASB 87 rules), this indication needs to be false. The Initial Debt Accounting process will not include interest in either of those postings. Principal will continue to be considered for both postings. Also, when this setting is false, the event type in the Repayment of Interest Event Type should be one that only does receivable and revenue like the delivered AR01 event type and not the LS16 event type.
Lease Authorization Event Type	An optional event type to record an ‘authorized but unissued lease authorization amount’ with the Initial Debt Accounting Chain. When populated on Debt Type, the Lease Setup Transaction will infer the event type and automatically check the Generate Authorization Accounting flag. While it is possible to perform the accounting, a Lease Authorization Event Type for use as lessor is not delivered because the practice would be rare.
Repayment of Principal Event Type	A required event type to record the payable for principal to an external lessor or the receivable for principal from an external lessee with the Initial Debt Accounting Chain. A value has to be supplied if using that chain and payments and billings are not suppressed with the Manual Payments/Billing flag being checked or the Bill Principal flag being unchecked for the selected schedule.
Repayment of Interest Event Type	A conditionally required event type to record payable for interest to an external lessor or the receivable for principal from an external lessee with the Initial Debt Accounting Chain. The event type is required for Capital leases but is prohibited for Operating leases.
Principal Accrual Event Type	A required event type to record the principal being accrued and then reversed by the Periodic Debt Accounting Chain.
Interest Accrual Event Type	A conditionally required event type to record interest being accrued and then reversed by the Periodic Debt Accounting Chain. The event type is required for Capital leases but is prohibited for Operating leases.
Initial Lease Accounting – Current Year Event Type	A conditionally required event type to record the current portion of payable or receivable for a lease with the Initial Debt Accounting Chain and with the Long Term Account Reclass Chain. The event type is required for Capital leases but is prohibited for Operating leases. Please see the Include Interest in Initial Accounting field description as it impacts the use of this event type.
Initial Lease Accounting – Long Term Event Type	A conditionally required event type to record the long term portion of payable or receivable for a lease with the Initial Debt Accounting Chain and with the Long Term Account Reclass Chain. The event type is required for Capital leases but is prohibited for Operating leases. Please see the Include Interest in Initial Accounting field description as it impacts the use of this event type.
Capital Lease Expense	A conditionally required event type to record the lease expense and other funding sources entries for a lease with the Initial Debt Accounting chain. The event type is required for Capital leases as Lessee but prohibited when the Lessor and for all Operating leases.
Deferred Principal Revenue	A conditionally required event type to record the deferred principal revenue for a lease with the Initial Debt Accounting chain. The deferred revenue is then reversed with each billing for the lease created by the Debt Payment & Billing Chain. The event type is required for Capital leases as Lessor but prohibited when the Lessee and for all Operating leases.
Deferred Interest Revenue	A conditionally required event type to record the deferred interest revenue for a lease with the Initial Debt Accounting chain. The deferred revenue is then reversed with each billing for the lease created by the Debt Payment & Billing Chain. The event type is required for Capital leases as Lessor but prohibited when the Lessee and for all Operating leases. Please see the Include Interest in Initial Accounting field description as it impacts the use of this event type.
Down Payment Event Type	An optional event type to record the payable or receivable for a lease down payment by the Debt Payment & Billing Chain. Leaving this event type field blank prohibits the creation of a Schedule Detail with the Down Payment value for Schedule Detail Type on lease transactions for a Debt Type.
Initial Other Amount 1-5 Event Type	An event type that is only required when amortizing costs and it is necessary to set up accounts initially for the lease for amortizing over the life of the lease. If not using the Other Amount (Schedule Generation Action is set to Not Used, Do Not Include in Generated Schedule, or left blank), then the event type can be left blank. This event type is not allowed if the Schedule Generation Action 1 is one of the ‘payment’ choices.
Other Amount 1-5 Event Type	An optional event type field that is left blank unless Other Amount 1 can be used to record one of the following: When there is an additional cost, such as an escrow or fee that has to be paid or billed. When there is a cost being amortized. By specifying a value, you are indicating that leases with this Debt Type can record the Other Amount. A Schedule Generation Action of any value other than Not Used makes the Other Amount Event Type field required. The Other Amount Name field is required if this event type field is populated to give meaning to the Other Amount on the Lease Setup and Lease Modification transactions.
Other Amount 1-5 Name	A conditionally required descriptive field that is inferred to lease transactions to inform the user what the Other Amount 1 can be used for. A value is required in this name field if the Other Amount Event Type is populated. A value should not be entered if the Other Amount 1 is not being used as that would cause confusion during transaction data entry.
Schedule Generation Action 1	The optional Schedule Generation Action field serves two different functions. First, when set to one of the ‘payment’ or ‘amortization’ values the Other Amount Name and Other Amount Event Type are required. Secondly, the selection instructs the Generation Schedule action on how to treat the Other Amount field when creating schedule details. Valid values include: Not Used – The Schedule Generation action will not place the Other Amount on any record. This choice will not allow event type fields for the other amount to be populated, thus preventing transactions from having an amount entered for the other amount. Repeat on Every Payment – The Generate Schedule action will place the Other Amount on all Schedule Detail records with a Schedule Detail Type of Regular Payment (and Down Payment ). With this choice, the Other Amount is considered an additional payment amount besides principal and interest. Record on First Payment Only – The Generate Schedule action will place the Other Amount on the first Schedule Detail record with a Schedule Detail Type of Regular Payment (or Down Payment if a lease). With this choice, the Other Amount is considered a one-time payment. Record on Last Payment Only – The Generate Schedule action will place the Other Amount on the last payment Schedule Detail record with a Schedule Detail Type of Regular Payment. With this choice, the Other Amount is considered a one-time payment. Split Evenly Across All Payments – The Generate Schedule action will divide the Other Amount by the total number of payment Schedule Detail records (Down Payment or Regular Payment). The resulting amount will be placed on every Schedule Detail record that is a payment with the last record receiving any rounding amount. With this choice, the Other Amount is considered a payment made with each principal and interest payment. Amortize - Straight Line – The Generate Schedule action will create amortization Schedule Detail records by dividing the Other Amount by the total number of amortizations. The resulting amount will be placed on every amortization Schedule Detail record with the last record receiving any rounding amount. As the name implies, this choice makes the Other Amount an amortization and not a payment. Do Not Include in Generated Schedule – The Schedule Generation action will not place the Other Amount on any records.