Investment System Settings

Overview of IL01IN

The Investment System Settings screen establishes certain default settings that are used throughout the Investment application. There are multiple tabs on this screen.

Base Settings Tab

On the base settings tab, you have the following options:

Field	Description
Notice Method	Indicates what rules to follow in determining the maturity notice to send out as an investment approaches maturity. This notice is typically issued 60 days prior to maturity, but the number of days is controlled by how the job to produce notices is set up. Click the drop down arrow to select from a list of active notice methods in the system
Variable Rate Note Basis	The weighted average interest rate on all active loans currently in the system. This rate becomes the basis for flex note types (notes where the interest rate is a certain percentage below the variable rate basis)
IRA Fee Method	Indicates whether or not the system should assess a fee for IRA deposits. Click the drop down arrow to select from a list of active IRA Fee Methods configured in the system
Interest Payment Method	Indicates whether interest should be paid relative to the purchase date of the investment. Click the drop down arrow to select from a list of active interest payment methods in the system Note: The interest-payment period is set up for each individual investment type
Redemption Method	Indicates the action to be taken with principal and interest when an investment note matures. This is the default in the event that the investor chooses no alternative action. Click the drop down arrow to select from a list of active redemption methods configured in the system
Issuance Method	Indicates whether or not an actual investment note will be issued to the investor. When an investor wants to receive an investment note, he/she must file it away with important papers somewhere that will be remembered in the future. This is because the investor must return the note at maturity if he/she wants to redeem it or transfer it to a new investment. If the investor chooses to let the note extend, he/she does not need to return it. Click the drop down arrow to select from a list of active issuance methods within the system. Your options are: Book entry: Investor receives only a confirmation and does not need to return the note at maturity Safekeep: When the note is created, it is printed on pre-printed paper and kept by your organization for safekeeping Issue note: The investor receives the investment note and must return it at maturity if investment is to be redeemed or re-invested
Note Amount Format	Format by which the principal balance is printed on the investment note. Particularly used to indicate whether a “$” should be printed or not (if pre-printed)
Note Rate Format	Indicates the number of digits to display before and after the decimal for rates on investment notes. Use the following format: 99.9999. Enter “z” in place of the 9 wherever you want to ensure that a space is allocated (even if there is no number)
Approve Notes	A check in this box indicates that an authorized user must review and approve new investment notes before the system will allow a change of business date
Print Countersignature	A check in this box indicates that the system should print a signature image on any check to output
Approve Checks	A check in this box indicates that an authorized user must review and approve new checks before the system will allow a change of business date
Pay in Purchase Month	Indicates whether investment interest should be paid in the purchase month. If interest payments are quarterly, for example, and an investment is purchased in June, should interest be paid at the end of June? The alternative would be deferring interest payment until the following quarter. Note: This selection only applies in cases where the interest payment method is based on the current and purchase month
Approve Demand Deposits	A check in this box indicates that an authorized user must review and approve any additions to demand notes before the system will allow a change of business date
Allow Weekend Usage	Indicates if the business date can be changed to a weekend date, as well as whether maturity dates can fall on weekends
Detailed Investment Status	Selecting this option displays additional detail about the status of an investment. Converts a simple numeric code to additional descriptive information such as how an investment has acquired its present status (transferred, redeemed, re-registered, canceled, etc.)
Uses Renewal Logic	Indicates whether renewal logic selected under Redemption Method should be activated
IRA Details	Indicates whether the system needs to track additional IRS details for reporting purposes. The Internal Revenue Service requires additional information on the nature of a contribution (i.e., regular contribution, Roth IRA contribution, Roth IRA conversion, miscellaneous contribution) or distribution (i.e., early disbursement, disability disbursement, death disbursement, normal disbursement, Roth IRA in first five years). This additional layer of information is only required of IRA accounts
Accrue After Maturity	Indicates whether to allow interest to accrue after the investment has reached its current maturity date. Checking this box activates this feature when month-end investment interest accrual runs

Check Wording Tab

On this tab, you have two fields to configure:

Field	Description
Normal Check Wording	Wording that will appear on the stub of a check derived from an investment, provided the investment type has been set up to make payments to the investor
Alternate Payee Wording	Wording that will appear on the stub of a check derived from an investment, provided the investment type has been set up to make payments to an alternate payee

General Ledger Tab

The General Ledger tab establishes base accounts to be used for investment transactions throughout the system. For each field, you can type in the applicable GL account or click the list icon to select from a list of active GL accounts in the system. You have the following fields available to you:

Field	Description
Interest Expense	Example
Interest Reserve	Example
Interest Withheld Reserve	Example
Cash Suspense	Example
Penalty Income	Example
Misc Adjustment Expense	Example
EOM Interest Payable	Example
Daily Payable	Example
Premium Principal	Example
Premium Interest	Example
Premium Payable	Example