Set up an accrual offset payment (pay investors using accrued funds)

First, make sure you have an accrual type security set up. Let’s imagine you have two different securities:

• Ordinary Units (a unit trust type security)
• Accruals (an accrual type security)

To use a payment to pay investors using the accrued funds in their Accruals holdings, follow these steps:

• Go to Payments and click +Create new payment.
• In the Select one or multiple securities field select Ordinary Units.
• Fill out components to set up the payment according to your requirements.
• In Distribution reinvestment plan participation select Yes for Allow DRP.
• At the bottom of the page click the Show more options link.
  • In the Tax statements and tax office reporting section, choose Yes or No as appropriate. Most likely you will want to include this kind of payment in tax office reporting.
  • In the Communications section in the Create communications for this payment choose Yes as you will want to create and send payment statements to your investors for this kind of payment.
  • In the Accrual offset section, click Yes for the Create an accrual offset for this payment. Select the security name (eg, Accruals from the example above) in the Select security to post offset to dropdown field.
• Click Next and payment will be saved.
• You will be redirected to the Payment details page to review the payment details. 
• Click Next and on the next page click Approve and schedule payments. A warning message will appear to show some important information before you proceed. If you’re sure, click Yes, I’m sure.
• The payment is now approved. On the payment date the following will automatically happen:
  • A redemption transaction will be created in the Accruals holding for every investor in the payment, for an amount equal to the gross amount which they are entitled to be paid. This will decrease their balance in their Accruals holding, since they are being paid using the funds which have accrued in that holding.
  • An activity log entry will be created detailing the processing/creation of the aforementioned transactions.
  • An email notification will be sent to notify you once the transactions have been processed. This email notification links to the aforementioned activity log so that you can review the accrual offset transactions.