Reversing a Portfolio Purchase
Overview of IL711
At some point during the lifespan of a portfolio comes the time to harvest investment funds and realize the earnings achieved. This is done through redemption or sale of the portfolio. Once your organization has entered a cash receipt with the proceeds of the redemption or sale, this process uses the Payment Processing interface to specify the receipt and indicate the portfolio to which it applies.
- From the DDI Connect main menu, double-click Financial Services
- Double-click Data Processing
- Double-click Payment Processing. You will see this screen:
Locate the batch containing the purchase reversal you wish to process. The items will be listed in the Detail area of the screen:
Double-click the item you wish to work with. This will activate the Transactions tab:
Double-click the Portfolio Transactions item. This will expand the Portfolio menu:
Double-click the Portfolio Purchase Reversal item. This will launch the Portfolio Purchase Reversal screen:
The following fields are available on this screen:
| Field | Description |
|---|---|
| Reverse date | Date of the reversal transaction. The default will be to today's business date. You can adjust by typing the date in mm/dd/yyyy format |
| Number units sold | Current number of sold units for the selected portfolio. May not exceed the number of sold units listed in the portfolio record |
| Face amount | Portion of the reversal to apply to the face value of the portfolio investment |
| Interest reversed | Amount of interest to be reversed |
| +Premium/-Discount | Premium (+) or discount (-) amount associated with the reversal, if any. Typically the premium/discount balance when the portfolio is reversed |
| Monthly amortization | Monthly portion of the premium or discount amount paid or received on the selected portfolio. Used to spread the premium or discount over the course of the loan according to accounting principles |
| Tran amount | Transaction amount. Sums of the values in the Face amount, Interest reversed, and +Premium/-Discount fields above. Display only |
| Tran balance | Transaction balance. The difference between the selected cash receipt and the transaction amount above. Display only |
When you have finished entering the information, the tran balance field should show 0.00. Click Save. You will see this message:
Click OK. You will be returned to the Payment Processing screen, and the item will now show as being processed:
