Debt Defaults
The Debt tab of Special Accounts allows the establishment default nominal accounts for debt accounting activities on a system-wide basis. There is Special Fund Accounts equivalent of this tab.
All default accounts are all optional. Setup needs to only be done for those accounts that match the Major Types of Debt (Loan, Lease, or Bond) used and in some cases various sub types of debt within those three. If not used, the account can be left blank. If used and left blank, then transactions generated by the application will reject with missing values.
Note that the accounts on this SPEC page are mainly Object and Revenue fields. The reason for this is that throughout the Debt Management accounting model Balance Sheet Account defaults are set directly on the Posting Code (PSCD) page with the Default BSA field set to Use PSCD Value and a Balance Sheet Account entered in the Default BSA Code field, with the Defaults SBSA Code field also being populated as necessary. This setup allows for various types of debt instruments to use different Balance Sheet Account codes for reporting purposes.
The following table displays default accounts in alphabetical order.
Default Account |
Description |
Bond Interest Payment Object Bond Interest Payment Sub Object |
The object used on generated payments to the paying agent if the bond was set up without an object on the Bond Payments/Borrower COA record used for interest. |
Bond Principal Payment Object Bond Principal Payment Sub Object |
The object used on generated payments to the paying agent if the bond was set up without an object on the Bond Payments/Borrower COA record used for principal. |
Capital Lease Interest Object Capital Lease Interest Sub Object |
The object used on generated payments to the lessor if the lease was set up without an object on the Lessee/Borrower COA record used for interest. |
Capital Lease Interest Revenue Capital Lease Interest Sub Revenue |
The revenue source used on generated billings to the lessee if the lease was set up without a revenue source on the Lessor/Lender COA record used for interest. |
Capital Lease Principal Object Capital Lease Principal Sub Object |
The object is used on generated payments to the lessor if the lease was set up without an object on the Lessee/Borrower COA record used for principal. |
Capital Lease Principal Revenue Capital Lease Principal Sub Revenue |
The revenue source used on generated billings to the lessee if the lease was set up without a revenue source on the Lessor/Lender COA record used for principal. |
External Loan Interest Paid Object External Loan Interest Paid Sub Object |
The object used on generated payments to the external lender for interest if the loan was set up without an object on the Borrower COA record used for interest. |
External Loan Interest Received Revenue External Loan Interest Received Sub Revenue |
The revenue source used on generated receivables to the external borrower for interest if the loan was set up without a revenue source on the Lender COA record used for interest. |
External Loan Principal Paid Object External Loan Principal Paid Sub Object |
The object used on generated payments to the external lender for principal if the loan was set up without an object on the Borrower COA record used for principal. |
External Loan Principal Received Revenue External Loan Principal Received Sub Revenue |
The revenue source used on generated receivables to the external borrower for principal if the loan was set up without a revenue source on the Lender COA record used for principal. |
Internal Loan Interest Paid Object Internal Loan Interest Paid Sub Object |
The object used on generated internal transactions to record interest paid to an internal lender by an internal borrower if the loan was set up without an object on the Borrower COA record used for interest |
Internal Loan Interest Received Revenue Internal Loan Interest Received Sub Revenue |
The revenue source used on generated internal transactions to record interest received by the internal lender from the internal borrower if the loan was set up without a revenue source on the Lender COA record used for interest. |
Internal Loan Principal Paid Object Internal Loan Principal Paid Sub Object |
The object used on generated internal transactions to record principal paid to an internal lender by an internal borrower if the loan was set up without an object on the Borrower COA record used for principal. |
Internal Loan Principal Received Revenue Internal Loan Principal Received Sub Revenue |
The revenue source used on generated internal transactions to record principal received by the internal lender from the internal borrower if the loan was set up without a revenue source on the Lender COA record used for principal. |
Operating Lease Object Operating Lease Sub Object |
The object used on generated payments to the lessor if the lease was set up without an object on the Lessee/Borrower COA record used for principal. |
Operating Lease Revenue Operating Lease Sub Revenue |
The revenue source used on generated receivables to the lessee if the lease was set up without a revenue source on the Lessor/Lender COA record used for principal. |
Lease Expense Object Lease Expense Sub Object |
The object used by the Initial Debt Accounting Process to record capital leases as the lessee. This default should be completed so that any object specified for the Lessee COA record with Type of Payment of Principal or All is not used, as often a different object is desired for principal payments should be used with the Lease Expense posting. |
Bonds Other Financing Sources Revenue Other Financing Sources Sub Revenue |
The revenue source used by the Initial Debt Accounting Chain job to record bonds. |
Leases Other Financing Sources Revenue Other Financing Sources Sub Revenue |
The revenue source used by the Initial Debt Accounting Chain job to record capital leases as the lessor. This default should be completed so that any revenue source entered on the Paying Agent / Lender COA record with a Type of Payment of Principal or All is not used, as often a different revenue source is desired for principal payments should be used with the Other Financing Sources posting. |
