Business Rules
For information about business rules that apply to all endowment transaction e-docs, see Standard Business Rules.
In addition to the standard business rules for endowment transactions, the following business rules apply to asset decrease transactions:
• When you initiate a document, you must select a Transaction Sub Type value ('cash' or 'non-cash').
• You must specify or enter a valid and active security in the Security Details tab. Only one security record may be used per e-doc.
• The security specified must not have a Class Type Code of 'L' (Liabilities).
• You must enter a valid and active Registration Code value.
• On each transaction line, you must specify a KEMID that owns sufficient shares to complete the transaction.
• You must enter a number greater than zero for the units in the transaction line.
• You must specify a tax lot that has sufficient units and value to complete the transaction. An asset cannot have a value less than zero.
• For securities that involve tax lots, the system initially creates transaction lines based on the involvement of all lots held. If you restrict the activity to selected lots (by deleting some lots in the Tax Lots Lines tab from the calculation), the system recalculates and updates the remaining lots in the tab.
• This type of e-doc may be reversed.
• Although you enter all values as positive numbers in the Asset Decrease e-doc, the system creates transactions with negative values for Units and Carry Value.
• When you add a transaction line, the system checks to see whether the Etran code affects corpus. If it does, the system updates the KEMID's corpus value accordingly.
• When you add a transaction line, the system generates a Tax Lot Line record to show how the holding tax lot record(s) are affected.
• When you reverse a transaction (via the error correction button that displays at the bottom of the screen after a transaction has been posted), the system generates a new e-doc using all the information from the original e-doc with all signs reversed.
If the Transaction Sub Type is 'Cash:'
• You cannot enter an Etran Code value in the transaction line.
• You must enter the amount of cash received in the Transaction Amount field of the transaction line in order to calculate the gain or loss on the transaction.
• All system calculations for each holding tax lot are rounded according to the rules for rounding.
• The system's calculations for each transaction are based on the method your institution has specified for cash transactions (average balance, first-in-first-out [FIFO], or last-in-first-out [LIFO]).
• For each lot included in the Tax Lot Lines tab, the system adds a record to the Holding Lot table. This stored data includes:
o The document number from the Doc Nbr field in the e-doc's header.
o The line number from the transaction line on the e-doc.
o The holding lot number for both the KEMID on the corresponding transaction line and the security being reduced.
o The number of units from the security tax lots calculation times negative 1 (-1). As a result of this calculation, this value is always a negative number.
o The holding cost from the security tax lots calculation times negative 1 (-1). As a result of this calculation, this value is always stored as a negative number.
o Short and/or long term gain or loss from the security tax lots calculation.
o Acquired date. The system uses the acquired date to determine whether gains and losses are short term or long term. If the transaction date is 12 months or less from the acquired date, the gain or loss is short term. If the action date is more than 12 months from the acquired date, the gain or loss is long term.
If the Transaction Sub Type is 'Non-Cash:'
• You must specify an Etran code in the transaction line. The Etran code entered must be valid for the KEMID specified.
• You must specify the units of the asset to be reduced.
• You cannot enter a transaction amount in the transaction line. The system calculates the transaction amount and enters it as a positive amount. No gain or loss is recorded in the tax lot lines.
• All calculations for each holding tax lot are rounded according to the rules for rounding.
• The system's calculations for each transaction are based on the method your institution has specified for non-cash transactions (average balance, first-in-first-out [FIFO], or last-in-first-out [LIFO]).
• The system's tax lot lines calculations determine the number of units and the carry value of those units. It makes no calculations beyond this point because no gain or loss is involved in the transaction.
• For each lot included in the Tax Lot Lines tab, the system adds a record to the Holding Lot table. The data includes:
o The document number from the Doc Nbr field in the e-doc's header.
o The line number from the transaction line on the e-doc.
o The holding lot number for both the KEMID on the corresponding transaction line and the security being reduced.
o The number of units from the security tax lots calculation times negative 1 (-1). As a result of this calculation, this value is always a negative number.
o The holding cost from the security tax lots calculation times negative 1 (-1). As a result of this calculation, this value is always stored as a negative number.
o Acquired date.
Routing