The following event types, used to manually record bonds, existed before the addition of the Debt Management module. These event types are still supported but do not fit the automated accounting of Debt Management.
GA20: Record Bond Liability - The event type establishes the liability for the debt as well as either a premium or a discount that may have existed for the issue. The Journal Voucher is the most common transaction for recording such activity.
Posting Pair A: Liability
Dr A022: Bond Payable Offset (E)
Cr A005: Bonds Payable (L)
Posting Pair B: Discount
Dr A027: Bond Discount/Premium (L)
Cr A005: Bonds Payable (L)
Posting Pair C: Premium
Dr A005: Bonds Payable (L)
Cr A027: Bond Discount/Premium (L)
Prior Event Types: Referenced accounting activity for this event type is not a likely occurrence.
Subsequent Event Types: Referencing accounting activity for this event type is not a likely occurrence.
GA16: Collect Bond Proceeds - The event type records the cash and revenue resulting from a bond issuance. The Journal Voucher or Cash Receipt is the most common transaction for recording such activity. A unique revenue posting code for Bond Revenue has been used for two reasons: if the posting code should not update revenue budgets like R003 would and for easy identification for reporting needs.
Posting Pair A: Proceeds
Dr A001: Cash (A)
Cr A004: Bond Revenue
Prior Event Types: Referenced accounting activity for this event type is not a likely occurrence.
Subsequent Event Types: Referencing accounting activity for this event type is not a likely occurrence.
GA17: Record Bond Issuance Costs - When issuance costs are deducted from the proceeds of a bond issue, there will be no disbursement for those costs. For that reason, this event type exists to record such costs. If those costs were not deducted, then a request for payment would be processed to get a disbursement. This event type is similar to GA01 that is covered in the Miscellaneous Account tab later. The D014 posting code is the same as used for other cash expenditures and may be substituted by a custom one if budget updates are not desired or a need for quick identifications in reports exists. The Journal Voucher is the most common transaction for recording such activity.
Posting Pair A: Proceeds
Dr D014: External Cash Expenditure/Expense
Cr A001: Cash (A)
Prior Event Types: Referenced accounting activity for this event type is not a likely occurrence. A memo reference may exist to the transaction that recorded the bond proceeds.
Subsequent Event Types: Referencing accounting activity for this event type is not a likely occurrence.
GA18: Amortize Bond Discount or Premium - When a bond sells for less than face value, it is considered sold at a 'discount'. When sold for more than face value, it is sold at a 'premium.' The initial recoding of a discount serves to increase the bond liability while also establishing a discount account with a contrary balance (debit balance for a liability account). The initial recoding of a premium decreases the bond liability while also establishing a premium account (credit balance for a liability account). Over the life of the bond, these discount and premium accounts are reduced (amortized) while an accrued expenditure is recorded. The final amortization will occur as the note becomes payable. The Journal Voucher is the most common transaction for recording amortizations, and the reoccurring ability of the Future Transaction Triggering functionality is often used to schedule the amortization to occur automatically.
Posting Pair A: Discount
Dr D011: External Accrued Expenditure/Expense
Cr A027: Bond Discount/Premium (L)
Prior Event Types: Referenced accounting activity for this event type is not a likely occurrence.
Subsequent Event Types: Referencing accounting activity for this event type is not a likely occurrence.
GA19: Accrue Bond Interest - At month-end and year-end the need exists to accrue interest for a bond issue if interest payments do not occur at month-end. The Journal Voucher is the most common transaction for recording interest accruals, and the reversing capability of the Future Transaction Triggering functionality is often used to reverse the accrual at the beginning of the next month or new-year.
Posting Pair A: Discount
Dr D011: External Accrued Expenditure/Expense
Cr A015: Generic Liability (L)
Prior Event Types: Referenced accounting activity for this event type is not a likely occurrence.
Subsequent Event Types: Referencing accounting activity for this event type is not a likely occurrence.
AP19: Authorize Bond Interest Payment - Periodically over the life of a bond, interest must be paid. This event type is used to request that payment. A separate event type is used to track such a payment request instead of using AP01 for tracking purposes only. Given that such an event occurs on a set basis and is for a set amount, the Future Transaction Triggering feature is often used to schedule these interest payment requests automatically. The General Accounting Expenditure transaction is the most common transaction for recording such activity.
Posting Pair A: Disbursement
Dr D011: External Accrued Expenditure / Expense
Cr D001: Disbursements Payable (L)
Prior Event Types: Referenced accounting activity for this event type is not a likely occurrence.
Subsequent Event Types: Depending on the Disbursement Option on SOPT and whether or not a manual or automatic disbursement will be done, the event types that will reference and liquidate AP13 are: Payout Bond Principle Automatically (DI46-48) or Payout Bond Principle Manually (DI96-98). The AP Event Type Crosswalk (APEVXW) and MD Default Event Type (MDDFEV) will ensure the correct event type is placed on the disbursement according to SOPT and other disbursement parameters.
AP13: Authorize Bond Principal Payment - As the maturity data of a bond issue is reached, the principal amount financed must be paid. This event type is used to request that payment. A separate event type is used to track such a payment request instead of using AP01 because of two reasons. A unique posting code is used to record Bond Principal Expenses for reporting purposes and because budget updates may not be required, which would be done with D011. The General Accounting Expenditure transaction is the most common transaction for recording such activity.
Posting Pair A: Disbursement
Dr D012: Accrued Bond Principal Expense
Cr D001: Disbursements Payable (L)
Prior Event Types: Referenced accounting activity for this event type is not a likely occurrence.
Subsequent Event Types: Depending on the Disbursement Option on SOPT and whether or not a manual or automatic disbursement will be done, the event types that will reference and liquidate AP13 are: Payout Bond Principal Automatically (DI46-48) or Payout Bond Principal Manually (DI96-98). The AP Event Type Crosswalk (APEVXW) and MD Default Event Type (MDDFEV) will ensure the correct event type is placed on the disbursement according to SOPT and other disbursement parameters.
GA21: Reclassify Bond Discount or Premium - When a bond matures the amounts previously amortized for either a discount or premium must be reclassified from Accrued Expenditures to Cash Expenditures. The Journal Voucher is the most common transaction for recording such activity.
Posting Pair A: Discount
Dr D014: External Cash Expenditure/Expense
Cr D011: External Accrued Expenditure/Expense
Prior Event Types: Referenced accounting activity for this event type is not a likely occurrence.
Subsequent Event Types: Referencing accounting activity for this event type is not a likely occurrence.
The following event types are delivered for use with the various chain jobs of Debt Management, but can also be used to manually record bonds.
BD01 Authorize Bonds To Be Issued - This event type is used with the Debt Accounting (DA) transaction to record the amount authorized for borrowing with bonds. As those bonds are issued and sold, this event type is used again to reduce the outstanding amount of that authorization.
Posting Pair A:
Dr A401: Bonds Authorized but Unissued (A)
Cr A402: Bond Authorization Offset (CA)
Prior Event Types: Referenced accounting activity for this event type is not possible.
Subsequent Event Types: The same event type will subsequently be used with a negative accounting line to reduce the original balance as bonds are issued.
BD10 Record Bond Proceeds - This event type is used with the Debt Accounting (DA) transaction to record the net of proceeds after adjustment for any discount or premium.
Posting Pair A:
Dr A001: Cash (A)
Cr A410: Other Financing Sources (NR)
Prior Event Types: Referenced accounting activity for this event type is not possible.
Subsequent Event Types: Referencing accounting activity for this event type is not possible.
BD11 Record Bond Payable - Current Portion - This event type is used with the Debt Accounting (DA) transaction to record the amount of principal due in the current fiscal year.
Posting Pair A:
Dr A413: Bond Financing Debt (E)
Cr A411: Bonds Payable – Current (L)
Prior Event Types: Referenced accounting activity for this event type is not possible.
Subsequent Event Types: Referencing accounting activity for this event type is not possible, but principal payments will reduce the Bonds Payable account.
BD12 Record Bond Payable - Long Term Portion - This event type is used with the Debt Accounting (DA) transaction to record the amount of principal due after the current fiscal year.
Posting Pair A:
Dr A413: Bond Financing Debt (E)
Cr A412: Bonds Payable – Long Term (L)
Prior Event Types: Referenced accounting activity for this event type is not possible.
Subsequent Event Types: Referencing accounting activity for this event type is not possible, but the Long Term Account Reclassification job will reduce the long term payable account when moving a portion to the current payable account.
BD13 Record Original Issue Discount - This event type is used with the Debt Accounting (DA) transaction to record the amount of discount determined at the time of the bond issue.
Posting Pair A:
Dr A414: Original Issue Discount Unamortized (A)
Cr A413: Bond Financing Debt (E)
Prior Event Types: Referenced accounting activity for this event type is not possible.
Subsequent Event Types: Although not directly referenced, the subsequent DA transactions created with the BD20 event type will reduce both accounts as the discount is accreted.
BD14 Record Original Issue Premium - This event type is used with the Debt Accounting (DA) transaction to record the amount of premium determined at the time of the bond issue.
Posting Pair A:
Dr A413: Bond Financing Debt (E)
Cr A415: Original Issue Premium Unamortized (A)
Prior Event Types: Referenced accounting activity for this event type is not possible.
Subsequent Event Types: Although not directly referenced, the subsequent DA transactions created with the BD21 event type will reduce both accounts as the premium is amortized.
BD15 Record Bond Issue Costs to Be Amortized - This event type is used with the Debt Accounting (DA) transaction to record the amount of costs deducted directly from the bond sale proceeds at the time of the bond issue.
Posting Pair A:
Dr A416: Unamortized Bond Issue Costs (E)
Cr A001: Cash (A)
Prior Event Types: Referenced accounting activity for this event type is not possible.
Subsequent Event Types: Although not directly referenced, the subsequent DA transactions created with the BD22 event type will reduce the unamortized account as costs are amortized.
BD16 Record Purchased Interest - This event type is used with the Debt Accounting (DA) transaction to record any amount of purchased interest by bondholders because the bonds were issued after the Dated Date.
Posting Pair A:
Dr A001: Cash (A)
Cr A418: Purchased Bond Interest (L)
Prior Event Types: Referenced accounting activity for this event type is not possible.
Subsequent Event Types: Although not directly referenced, the subsequent payment request created with the BD30 event type will reduce the liability account.
BD17 Record Compounded Bond Interest Payable - This event type is used with the Debt Accounting (DA) transaction to record compounded interest.
Posting Pair A:
Dr A419: Compounded Bond Interest Expense (NE)
Cr A420: Compounded Bond Interest Payable (L)
Prior Event Types: Referenced accounting activity for this event type is not possible.
Subsequent Event Types: Although not directly referenced, the subsequent payment request created with the BD35 event type will reduce the liability account and the subsequent disbursement with BD36 to 38 will switch the expense account with cash expenditure.
BD20 Amortization of Original Issue Discount - This event type is used with the Debt Accounting (DA) transaction to accrete any original issue discount (Other Amount 1).
Posting Pair A:
Dr A413: Bond Financing Debt (E)
Cr A414: Original Issue Discount Unamortized (A)
Prior Event Types: Referenced accounting activity for this event type is not possible.
Subsequent Event Types: Referencing of this accounting activity is not possible.
BD21 Amortization of Original Issue Premium - This event type is used with the Debt Accounting (DA) transaction to amortize any original issue premium (Other Amount 2).
Posting Pair A:
Dr A415: Original Issue Premium Unamortized (A)
Cr A413: Bond Financing Debt (E)
Prior Event Types: Referenced accounting activity for this event type is not possible.
Subsequent Event Types: Referencing of this accounting activity is not possible.
BD22 Amortization of Bond Issue Costs - This event type is used with the Debt Accounting (DA) transaction to amortize bond issue costs (Other Amount 3).
Posting Pair A:
Dr D014: Cash Expense/Expenditure (NE)
Cr A416: Unamortized Bond Issue Costs (E)
Prior Event Types: Referenced accounting activity for this event type is not possible.
Subsequent Event Types: Referencing of this accounting activity is not possible.
BD23 Accrue Bond Expense - This event type is used with the Debt Accounting (DA) transaction to accrue any expense to be paid after the accrual period when the prior expense occurred before the start of that accrual period.
Posting Pair A:
Dr D011: Accrued Expense/Expenditure (NE)
Cr A417: Accrued Bond Expense Offset (L)
Prior Event Types: Referenced accounting activity for this event type is not possible.
Subsequent Event Types: The same event type is used in the reversal of the accrual in the next period when the schedule detail is Regular Payment.
BD30 Authorize Payment of Purchased Bond Interest - This event type is used to authorize payment from the Purchased Interest account when a bond was issued after the dated date.
Posting Pair A: Disbursement
Dr A418: Purchased Bond Interest (L)
Cr D001: Disbursements Payable (L)
Prior Event Types: Referenced accounting activity for this event type is not done.
Subsequent Event Types: Depending on the Disbursement Option on SOPT, the event types that will reference and liquidate BD30 are: Pay Purchased Bond Interest by Check, Standard Warrant, or Clearing Fund Warrant (BD31 - 33). The AP Event Type Crosswalk (APEVXW) will ensure the correct event type is placed on the disbursement according to SOPT and other disbursement parameters.
BD31 to BD33: Pay Purchased Bond Interest by Check / Standard Warrant / Clearing Fund Warrant - This trio of event types is used when there was purchased interest from a bond issue that is now being paid out to the Bond Agent. The Disbursement Option on SOPT will determine which of the three event types is used. For BD32 the credit is to D007: Warrants Payable (L) instead of A001. Posting Pair I is only generated for BD33.
Posting Pair A: Disbursement
Dr A418: Purchased Bond Interest (L)
Cr A001: Cash (A)
Posting Pair I: Clearing Fund
Dr D017: Warrant Clearing Cash (A)
Cr D018: Warrant Clearing Payable (L)
Prior Event Types: The only event type referenced would be BD30: Authorize Payment of Purchased Bond Interest.
Subsequent Event Types: The Event Types that follow are those used on the Disbursement Reclassification transaction type to record a disbursement as stale (DR01 & 2), escheated (DR03 & 4), or cancelled (DR05 & 6). In the case of a standard or clearing fund warrant, the transaction type will also reclassify as redeemed (DR20 & 21).
BD34 Authorize Bond Principal Repayment - This event type is used to authorize payment of bond principal.
Posting Pair A: Disbursement
Dr D011: Accrued Expense/Expenditure (NE)
Cr D001: Disbursements Payable (L)
Posting Pair E: Payable Adjustment (Pre Paid Asset)
Dr A411: Bonds Payable – Current (L)
Cr D413: Bond Financing Debt (E)
Prior Event Types: Referenced accounting activity for this event type is not likely but could be to an encumbering event type such as PR05.
Subsequent Event Types: Depending on the Disbursement Option on SOPT, the event types that will reference and liquidate BD34 are: Pay Expenditure Automatically (DI01 – 3) or Pay Expenditure Manually (DI51 – 3). The AP Event Type Crosswalk (APEVXW) will ensure the correct event type is placed on the disbursement according to SOPT and other disbursement parameters.
BD35 Authorize Compounded Bond Interest Payment - This event type is used to authorize payment of previously accrued bond interest that has been compounding instead of being paid on each coupon date.
Posting Pair A: Disbursement
Dr A420: Compounded Bond Interest Payable (L)
Cr D001: Disbursements Payable (L)
Prior Event Types: Referenced accounting activity for this event type is not done.
Subsequent Event Types: Depending on the Disbursement Option on SOPT, the event types that will reference and liquidate BD35 are: Pay Compounded Bond Interest by Check, Standard Warrant, or Clearing Fund Warrant (BD36 - 38). The AP Event Type Crosswalk (APEVXW) will ensure the correct event type is placed on the disbursement according to SOPT and other disbursement parameters.
BD36 to 38: Pay Compounded Bond Interest by Check / Standard Warrant / Clearing Fund Warrant - This trio of event types is used when there was compounding interest on a bond issue that is now being paid out to the Bond Agent. The Disbursement Option on SOPT will determine which of the three event types is used. For BD37 the credit is to D007: Warrants Payable (L) instead of A001. Posting Pair I is only generated for BD38.
Posting Pair A: Disbursement
Dr A420: Compounded Bond Interest Payable (L)
Cr A001: Cash (A)
Posting Pair M: Additional
Dr D014: Cash Expenditure/Expense (NE)
Cr D419: Compounded Bond Interest Expense (NE)
Prior Event Types: The only event type referenced would be BD35: Authorize Compounding Bond Interest Payment.
Subsequent Event Types: The Event Types that follow are those used on the Disbursement Reclassification transaction type to record a disbursement as stale (DR01 & 2), escheated (DR03 & 4), or cancelled (DR05 & 6). In the case of a standard or clearing fund warrant, the transaction type will also reclassify as redeemed (DR20 & 21).