Cash reset for accounts
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Cash reconciliation reset

Q:  We run a reconciliation against our accounting system every night.  Can I reset afsTRADE account cash balances if I find our accounting system arrives at different numbers than afsTRADE?  If so, are there any other values I need to change?

A: If you need to adjust the cash values in an account, there are four fields you need to update in the acttotal table

  • td_cash_balance
  • sd_cash_balance
  • computed_net_asset_value 
  • average_maturity 

afsTRADE is not an accounting system, so the cash numbers your accounting system provides may be different. For example, afsTRADE handles maturities (which includes pre-refunded bonds) and ordinary cash payments from bonds and interest-at-maturity securities. afsTRADE does not handle dividends (for stocks), unusual cash payments (such as floaters), or monthly returns of principal for MBS, among other things. After the afs Nightly process has run, you may reset the trade date (acttotal.td_cash_balance) and settlement date (acttotal.sd_cash_balance) cash balances for an account.  If you only have one of these numbers, you still need to reset both, preserving the difference in the numbers in afsTRADE.

The computed_net_asset_value field is inclusive of one of the two cash values.  WHICH cash value, trade date or settlement date, is declared in the INI file, and you need to respect that declaration (unless you have LimitCashBalanceFieldName=sd_cash_balance in your ini file, you can assume the value is trade date).  If you adjust the cash after the Nightly process has run, you need to adjust the computed NAV, too. Determine the difference between your cash number and the afstrade cash number, then add or subtract it from computed NAV.

new computed_net_asset_value = 
old computed_net_asset_value + (your cash number - AFS' cash number)

To calculate average_maturity you will need the old and new computed_net_asset_value's. The the new average maturity can be calculated as follows: 

average_maturity = 
average_maturity * old computed_net_asset_value / new computed_net_asset_value

Last updated: 04/28/05

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