Bond accounting software using level yield, effective interest method

Bond accounting software for purchased bonds and other investments
GAAP Effective Interest Method, level yield, constant rate
(also available using Straight Line Method)

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Easily manage dozens, hundreds, thousands of investments
     • Premium amortization
     • Discount accretion
     • OID for applicable bonds

Coupon interest
     • Total cash due this month
     • Total earned since previous payment
     • Accrued monthly interest

Individual bond + file totals for
     • Any month
     • Entire calendar or fiscal year
     • Other periods from any month ranging up to 60 months
     • Generate results in a matter of seconds

Account for
     Corporate bonds
     Municipal bonds
     Callable and non-callable bonds:
          With or without a call price
          With or without OID (original issue discount also amortized by the software)
          Partial calls, early redemptions, partial sales
     Convertible bonds
          The software calculates a constant rate to maturity using initial and convertible rates
     Hospital bonds
     Agencies
     Treasuries
     Bills
     Notes
     GNMAs, MBS, CMOs - account for declining par balances (for more robust accounting, see our FASB 91 version)
          The software recognizes a proportionate amount of premium or discount based upon the dollar reduction to Par
     Special issues
     PIKs - payment in kind with increases to par
     Other investments with or without reductions to par

Virtually any premium or discount instrument having
     Fixed rate
     Variable rate
     Zero rate
     Convertible rate
     360, 365, 366 day basis

Monthly and yearly
     Premium amortization
     Discount accretion
     Earned interest
          360 day years (default) and 365, 366 day basis at the record level
     Monthly totals
     Yearly totals
     Calendar and fiscal period book values, cost basis, carrying balances
     Monthly reports
     Annual reports
     GAAP, FASB compliant, effective interest rate calculations
     Detail month-by-month audit recognition schedule for any record on demand

Already amortizing premiums and discounts?
     The software can preserve current income and expense deferral balances.
     No adjusting journal entries.
The software can also amortize premiums and discounts from original begin dates.

Reports ....

User defined subtotals listing
     Discounts:
          All bonds with discounts and subtotals by desired category
          Par, Original Discount, Discount Accretion, Discount Balance, Cost Basis Book Value
     Premiums:
          All bonds with premiums and subtotals by desired category
          Par, Original Premium, Premium Amortization, Premium Balance, Cost Basis Book Value
     Portfolio totals

Cash Due report each month showing
     Coupon interest due on:
          1st of month
          15th of month
          Other due dates
     Purchased interest due
     Par due as a result of:
          Maturities
          Sales
          Calls:
                Call date reached
                Early call, redemption
                Partial call, redemption

Coupon Interest status report
     Total amount earned to date
      Interest earned but not yet due

Net Earnings Recap
     Earned interest
     Premium amortization
     Discount accretion
     Net earnings

Finalized Report for all bonds
     Matured
     Called
     Sold

Reconciliation Report
     Beginning period balances:
               Par
               Premium balance
               Discount balances
     Activity for period
               New additions
                Reductions to par
                Premium amortization
                Discount accretion
     Net activity
     Ending balances for all bonds and investments
     Recap of interest earned

Market Position report as of a given day
     Cost Basis, Book Value compared to Market Value
     Cost Basis, Book Value calculated as of any day

With reports
     View
     Send to printer
     Send to Adobe
     Send to Excel

General Ledger version also includes

Subsidiary Ledger report
     Subtotals by user defined category, such as general ledger account

Accrued Interest report
     Interest earned for the month with journal voucher and general ledger posting file

Journal Vouchers

General ledger posting files for:
     Premium and discount postings
     Interest accrual postings

Configurations and settings for ....

Bond holders, individuals, investors, foundations, active traders
     Discount accretion income, premium amortization expense:
               Totals for each category
               $Dollar weighted rates by category plus portfolio
               Group totals for any user-defined purpose
               Portfolio Net Earnings:
                    Interest
                    + Discount Income
                    - Premium Expense
                    = Net
     Lifetime month-by-month schedule for each bond:
               Audit detail amortization, accretion schedule for each record.
     Cash due reporting:
               Coupon interest plus Par due from maturities, calls and sales.
     Annual reconciliation report:
               Beginning balances, all activity, net activity, ending balances.

Client servicers, financial advisors, CPA accounting firms
     Calculate all of the above for your clients.
     Export reports covering:
               Current month and year
               Prior months and years
               Future months and years
     Amortization and accretion reports can span 1 to 60 months beginning with any month.
               View reports
               Send to printer
               Send to Adobe
               Send to Excel

Business - Add the General Ledger Module for
     Subsidiary ledger account listing with:
               Monthly recognition
               Accumulated
               Book value
               Par, principal
               Balances and totals by each account
    Interest accruals:
               Monthly earned income
               Accrued receivable balance
     Journal vouchers:
               Debit, credit columns with totals
     General ledger posting files:
               Transactions formatted for posting to any general ledger system
               Postings in a disk file or automatically exported to Excel

Price page and free demo ....

Effective Interest Method
Click to open and view Price page which has a link to download a free demo zip file at any time.
The free demo includes:
     • A live version of the software
     • Sample records
     • Ability to run all reports

Straight Line Method
Click to open and view Price page
Download a free demo from the Price page which includes:
     • A live version of the software
     • Sample records
     • Run reports

Amortization periods
     Any prior, current, future:
          Month
          Year
          Multiple years, calendar or fiscal for
                    Each bond
                    Totals for all bonds
                    User defined Group totals
                    Multiple bond files

Interest and rate calculations:
     Purchased interest: Track and account for interest paid at time of purchase but not yet due
     Accrued interest: Current month income posting plus Accrued Receivable Account balances (for business)
     Coupon interest: Cash due this month:
                                         Coupon interest
                                         Purchased interest
                                         Par due to sale, maturity, call
                                         Total amount of coupon and purchased interest owed but not yet due
     Earned interest: Coupon rate earnings for a period irrespective of accrual or cash activity
     Effective interest rate: The difference between this and coupon rate determines level yield recognition
     Constant yield rate: Convertible bond earnings rate blending original and convertible coupon rates
     Portfolio rate: Dollar weighted average coupon and effective rates for all investments

Amortize your investments
     Software and bonds reside on your computer
Amortize client investments
     Import and calculate a file for/from one or more clients
     Prior periods. Current. Future projections.

GROUP
     Group bonds and investments. Obtain subtotals by any category.
     Examples:
               Group = Lot 123, Lot 456, Lot 789 .... (get subtotals for each lot)
               Group = California, New York, Florida .... (get subtotals by each issuance state)
               Group = Broker name1, Broker name 2 .... (get subtotals by each different broker)
               Group = 2019, 2018, 2017 .... (get subtotals by each year of purchase)
               Group using any category for which you require subtotals of all bonds and investments within each Group
     Multiple worksheets.
               Maintain bonds and investments in more than one worksheet.
               Import and calculate one worksheet.
               Import and calculate some or all worksheets.

Call dates:
     Amortize to Maturity date or
     Amortize to a Call date including
               Call price other than Par
               Callable but not called
               Partial calls, early redemptions

Administrative:
     Reconciliation worksheet for audits and exams
             Beginning balances for Par, Premiums and Discounts
              + Additions for the period
              - Activity for amortization, accretion, reductions to Par
              = Ending Balances
                  Net Change summation
     Mark to Market report - Book Value vs. Market Value position
     Portfolio value as of any given day

Month-by-month recognition schedule for each bond. Annual subtotals.
     Includes a bond amortization calculator for "what if" questions
     What would happen if I sold an existing bond today?
     Should I buy this new bond?

Software and bonds reside on your system
     Copy, export, archive results.
     Income and expense, remaining balance, book value (cost basis), earned interest for each and totals for all records in a matter of seconds.
         From original begin dates or
         Current balances forward, as a conversion (no journal adjustments)

MORE ABOUT REPORTS ....
     • View
     • Send to local or network printer
     • Automatically export to Adobe
     • Automatically export to Excel for internal and external distribution

Report 1:   Enlarged view of the software import screen listing
Another view of the Import screen, primarily so you can sort records by desired values, such as Coupon rate, Maturity date and more.

Report 2: Trial Balance report
Premium, Discount recognition report. Includes Journal Voucher and General Ledger Posting file.
Typically for General Ledger Business Version.
Premium amortization and discount accretion will be recognized for the selected calendar calculation month. Records will be sorted by the values in spreadsheet column U general ledger accounts. Totals will be provided for each account. Totals will be grouped within Discount and Premium categories.
A Journal Voucher and General Ledger posting file will also be created.
For non-business purposes, spreadsheet column U values can be used to generate subtotals for other purposes dealing with premiums and discounts.

Report 3: Net recap report for calendar month or period
CASH interest +/- Discount, Premium amortization +/- Net Gain on sale.
Cash coupon interest received during the report period (the calendar month or number of months) plus Discount recognition and minus Premium recognition. The result is NET earnings for the period based on coupon cash receipts.

Report 4: Finalized records report
Net Gain or Loss for All records which have matured or otherwise ended their term.
All records which have reached Maturity date, Call date, have been Sold, Paid Down to zero, Redeemed in full or otherwise finished their term.
Report consists of Net Gain or Loss based on spreadsheet column M, Gain/Loss on sale and/or column O, Sale Proceeds.
This report can also be used as a purge list when beginning a new year. Create a new spreadsheet with a file name dated for the new year. Delete records appearing on this report through the prior year end.
Records will appear in the order they appear in the spreadsheet in order to facilitate the above.

ABOUT COUPON INTEREST: CASH vs. EARNED ....
CASH:
CASH and coupon interest due represent interest from one coupon payment date to the next.
Actual cash activity and dates need not be logged (see the following regarding differences between calculated earned and cash interest receipts). The system "moves" spreadsheet column R Payment Due date, along with a prior due/accrue from date, forward and backward based on the calendar calculation month.
EARNED:
EARNED interest is the amount to which you are entitled, typically representing full month periods but also spanning the entire life of the record. Interest is always being earned regardless of whether or not interest is received as cash (whether it be cash, check, direct deposit and otherwise). Think of Earned Interest as having a job where you get paid on Friday. Come Thursday evening, you have earned 4 days worth of your pay even though you won't get the cash until Friday.
This system calculates all interest based on spreadsheet values as they exist when imported. No calculations, report values or other results are ever saved from one import to another.
Penny differences will likely arise between actual cash received and what is calculated by the system. Substantial differences may need to be investigated.
Furthermore, coupon interest calculations in this software should never be used for tax or other reporting purposes. Instead, obtain and use the figures provided by the entity responsible for coupon payment disbursements.

Report 5: Net recap report for calendar month or period
EARNED interest +/- Discount, Premium amortization +/- Net Gain on sale.
Earned interest for the report period (the calendar month or number of months) plus Discount recognition and minus Premium recognition. The result is NET earnings for the period.

Report 6: Coupon Interest Status report
All coupon interest due since previous payment minus Cash Due this month.
Requires values in spreadsheet columns R and S (if columns R and S are blank, records will be flagged as missing required values).
The system determines the amount of coupon interest earned through this month including cash interest due. This furnishes everything earned and due since prior coupon payment dates. Records will be sorted by the values in spreadsheet column T general ledger accounts. Totals will be provided for each value in spreadsheet column T.
The report consists of records with a Begin Date equal to or earlier than the calendar month.

Report 7: Cash Due this month report
Coupon interest payments plus any par reductions, sales, maturities occurring this month.
Requires values in spreadsheet columns R and S (otherwise, records will be flagged as missing required values) .
The report includes records having a coupon payment due date matching the selected calendar calculation month. The report will also include interest plus Par for records with a Maturity date, Sale date or other finalized reason date falling within the calendar month. Also included are any Net gain for sold bonds as well as Par for reductions to Par for the month.
Subtotals are provided based on values in spreadsheet column T.
The report can be printed and/or exported to Excel or another spreadsheet, enabling you to "tick off" cash receivables as they come in (it is not necessary to update the system with cash receipts).
Records with a Begin Date later than the calendar month will be excluded. Records which have finalized, such as matured or called, in months PRIOR to the calendar month will be excluded.

Report 8: Accrued Interest report (requires General ledger module)
What was Earned this month. Includes Journal Voucher and General Ledger Posting File.
Requires values in spreadsheet columns R, S and T (if columns R and S are blank, records will be flagged as missing required values).
Typically for business (running this report is optional and not required for the system to operate).
The system determines the amount of coupon interest to accrue for the selected calendar calculation month. Also provides a "Total Accrued" which includes applicable Purchased Interest for balancing to receivable accounts. Records will be sorted by the values in spreadsheet column T general ledger accounts. Totals will be provided for each account. A Journal Voucher and General Ledger posting file will also be created.
The report consists of records with a Begin Date equal to or earlier than the calendar month. Records which have finalized, such as matured or called, in or prior to the calendar month will be excluded.

RECONCILING RECEIVABLE ACCOUNTS: The Accrued Interest Report provides a subsidiary listing for general ledger receivable accounts.
CASH INTEREST RECEIVED: Interest receipts can be posted directly to income.
The Accrued Interest report and Accrued Interest Reversal report (below) eliminate the need to reconcile cash receipts to receivable accounts each month.

Report 9: Accrued Interest Reversal report (requires General ledger module)
Reverse accruals for Cash Due that has been received. Includes Journal Voucher and General Ledger Posting File.
Requires values in spreadsheet columns R, S and T (if columns R and S are blank, records will not appear on this report).
Typically for business (running this report is optional and not required for the system to operate).
The system determines the amount of accrued interest to reverse for the selected calendar calculation month.
Subtotals are provided based on values in spreadsheet column T.
Prior month accruals are NOT being reversed.
Reversals are created ONLY for records having a coupon payment due plus Matured, Called, Sold and records which Paid off in the selected reversal month.
Reversal amount consists of accrued interest previously posted by the system for these records for ALL months, including Purchased Interest posted by you.
The system calculates running accrual for bonds through the preceding month to determine the amount to reverse (bonds with accrued interest should not be deleted from the spreadsheet until reversals have been done).
Records will be sorted by the values in spreadsheet column T general ledger accounts. Totals will be provided for each account. A Journal Voucher and General Ledger posting file will also be created.
The report consists of records with a Begin Date equal to or earlier than the calendar month. Records must also have a Coupon Due date in spreadsheet column R and a column S code greater than 0. Records which have finalized, such as matured or called, in months PRIOR to the calendar month will be excluded.


Report 10: Reconciliation Report for any month or annual period - Beginning balances plus activity for the period.
Balances at the beginning of the desired period, plus additions for new records during the period, minus activity equals ending balances.
Primarily used for reconciling changes to Balance Sheet accounts.

Report 11: Market Position Quote report. Compare Market Quote to Cost Basis calculated as of calendar 'did' day.
The system will compare a Market Quote for a bond to the Cost Basis calculated as of (TO) the 'dd' date portion of the calendar date. Premiums and discounts are not recognized for the 'dd' date.
Determine your portfolio position for each bond, with a total for all bonds.

Price page and free demo ....

If you don't see what you need ....
Special project? Pressed for time?
We offer
     • Bond calculation services on a one-time or recurring basis
     • Software customization
     • Other amortization software products

For more information,
email Support@fdssi.com

Software and Price
     • Software and bond files reside on your computer
     • Software for Windows® software on a computer, laptop and network sharing systems

General Ledger Module
     • Trial Balance subsidiary listing report - par, book value, premium and discount balances within each account
     • Journal Voucher with debit, credit posting columns
    • Accrued interest calculations and reports
     • Auditor worksheet - Reconciliation Report for any month or entire year:
     • Balance Sheet: Beginning balances, new additions, reductions, recognition, ending balances
     • P&L: Interest, premium expense, discount income, gain/loss on sales, net income for the period
     • Each bond plus File Totals Recap

Records retention
     • No need to save reports or schedules on paper
     • Hard copy retention can be eliminated
     • Whenever a report is needed for any prior month, year or other period:
              1) Import the applicable Excel file containing your bond portfolio at that time
                    Many clients "save as" and create a new file each year, and then delete matured and sold bonds from the new file.
              2) Set the software dropdown calendar date to the desired reporting month, year
              3) Run reports and schedules

Daily cost basis, book value
     • Current portfolio value
     • Comparison of Cost Basis/Book Values to Market quotes as of a given day
               Enter market quotes or
               Retrieve using Excel's RTD function to obtain quotes from an on-line source
     • Gain or loss if sold column
     • Each bond
     • Portfolio totals
     • Daily Cost Basis/Book Value listing for any date
     • EOM Mark to Market reporting

Accounting services firm? Financial advisor?
Do you prepare amortization reports for another party?
     • Import client bond file to the software
                    File can be maintained by you or
                    File can be maintained by client and emailed to you
     • Generate monthly, yearly bond amortization and other reports
     • Export results to Excel
     • Email to clients

Effective Interest Method, level yield
Click to open and view Price page which has a link to download a free demo zip file at any time.
The free demo includes:
     • A live version of the software
     • Sample records
     • Ability to run all reports
     and download a free demo right now

Straight Line Method
     Click to open and view Price page
     and download a free demo right now

Bond file calculation services
We can calculate a bond file on a one-time basis.
Premium and discount amortization for a month.
     For an entire calendar/fiscal year.
Reports and supportive data are provided in Excel.
For more information, Email Bond file calculation services

Questions?
Don't see what you need?
1-800-245-8444
or email Support@fdssi.com

Discount and premium effective interest method amortization
Software for Windows® on a computer, laptop, shared network and cloud based systems
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