This function determines the new book value for a securities position by calculating the net present value on the key date. It compares the net present value calculated with the current book value in the system and generates the corresponding interest capitalization flow for the difference. This function is useful for all security positions which have been assigned a position maintenance procedure allowing for amortization.

The function calculates the net present value of the bond on the key date and generates the corresponding amortization flows, which increase the book value of the position.

You can carry out a test run for the amortization, even if the required entries have not been made.

The posting log tells you which postings were made. For each posting activity, you can see the document number, the security ID numbers involved, and the amounts that were posted to which G/L accounts.

A separate reversal function is available. You can find the function in the securities area of the application menu under Accounting ® Operative Valuation Area ® Key Date Valuation ® Reverse Amortization.

The section Assign Position Management Procedure in the Implementation Guide (IMG).