Enter a Bond Issue Where Debt ID's Are CUSIPs

To create a Bond Setup (BONDS) and several BONDM transactions in order to create a structure where the authorization is the bond issue and each Debt ID is a CUSIP:

  1. Create an instance of a BONDS Transaction.

  2. Navigate to the Authorization tab where a row will already be inserted and enter the following:

  3. Authorization Debt ID, Authorization Name, Authorization Short Name, Authorization Date, Authorization Start, Authorized Amount, and Minimum Denomination: (enter information as needed to match the bond issue).

  4. Authorization Status: Ready to Exercise

  5. Debt Type: Coupon Bond

  1. Navigate to the Authorization COA tab where a row will already be inserted and enter the following. (This task assumes a Bond Authorization Event Type is entered for your Coupon Bond code selected from the Debt Type page.)

  2. Percentage: 100%

  3. COA: Fund and possibly Sub Fund code setup to track the issue

  1. Validate the transaction.

  2. If errors exist, fix the errors and repeat Step 4. If no errors exist, continue with step 6.

  3. Submit the transaction.

  4. Create an instance of the BONDM transaction, navigate to the Authorization tab, enter the Authorization ID from the previous BONDS, and use the Auto Apply action.

  5. Navigate to the Debt Instrument tab, insert a line and enter the following:

  6. Debt ID, Debt Instrument Name, Debt Instrument Short Name Principal, Number of Bonds Issued, and Denomination: (enter information as needed to match the CUSIP)

  7. Issue Date: (enter date of the bond issue)

  8. Principal: (Amount of principal for the CUSIP)

  9. Debt Instrument Status: Active Bond

  10. Use the Save action to save the Debt Instrument data, which will infer the Debt Type from the Authorization and create a record on all the remaining transaction tabs that are required for a bond.

  1. Navigate to the Paying Agent/Lender Information tab.

  2. Vendor Code: (enter or choose that of the paying agent)

  1. Navigate to the Bond Proceeds/Lender COA tab and create the following 3 records (copy and paste if you like):

Record 1

Record 2

Record 3

  1. Type of Payment: Other Amount 1 (discount)

  2. Percentage: 100%

  3. COA: Enter the Fund responsible for the debt

  1. Skip the Browser Information tab, navigate to the Bond Payment/Borrower COA tab and enter the following:

  2. Type of Payment: Principal

  3. Percentage: 100%

  4. COA: Enter the Debt Service Fund and other COA necessary for payments of interest and principal.

  1. Navigate to the Schedule tab and enter the following:

  2. Schedule Type: Principal in Last Payment w/Rate Interest

  3. Selected Schedule: true

  4. Interest Rate: (the annual rate for the issue)

  5. Frequency: Semi Annual

  6. Maturity Date: (date of CUSIP principal payment)

  7. Payment Month and Date of Month: (values stated in the issue)

  8. Amortization Frequency: Yearly

  9. Number of Amortizations: (number of years from issue to maturity)

  10. Amortization Month: June

  11. Amortization Date of Month: 30th

  12. Other Amount 1: (total discount on the issue * (CUSIP Principal / Total Issue Principal)

  13. Schedule Generation Action 1: Amortize – Constant Yield

  14. Take the Calculate YTM action

  15. Take the Generate Schedule action

  1. Validate the transaction

  2. If errors exist, fix the errors and repeat Step 13. If no errors exist, continue with Step 15.

  3. Submit the transaction

  4. Copy that BONDM to create a separate transaction instance for each CUSIP changing only the following fields to match that of each CUSIP.

  5. Debt Instrument: Debt ID, Debt Instrument Name, Debt Instrument Short Name, Principal and Number of Bonds.

  6. Schedule: Principal, Maturity Date, Other Amount 1

  1. Take the Generate Schedule action.

  2. Validate the transaction.

  3. If errors exist, fix the errors and repeat Step 18. If no errors exist, continue with Step 20.

  4. Submit the transaction.