Create Pooled Fund Distribution Transactions Process

The Create Pooled Fund Distribution Transactions process serves two purposes: It generates e-docs for distributing income by generating Cash Increase (ECI) e-docs for KEMIDs holding pooled funds, and if those funds are to be split between other KEMID's (as per the KEMID's payout instructions), the process immediately generates cash transfers to those KEMIDs. This process also generates Holding Adjustment (EHA) e-docs to distribute gains or losses to the KEMIDs holding the pooled funds.

pencil-small The prompt for activating the generation of holding adjustment transactions is in the Pooled Fund Value maintenance screen. On this screen, the user inputs a per-share value to be distributed and instructs the system when to effect the distribution.

This process may be run early in the batch processing sequence. It may be run in parallel with the Create Accrual Transactions process.

Each Cash Increase e-doc generated by this process:

• Has a document header that includes the description stated by your institution in the Endowment parameter for the process.

• Has a transaction sub-type of Cash (C).

• Has a transaction source type of Automated Entry (A).

• References a single security record.

Additionally, if a KEMID holds multiple tax lots of a security, each Cash Increase e-doc contains only one transaction line for each combination of KEMID, security, registration code, and income/principal indicator.

Each Holding Adjustment e-doc generated by this process:

• Has a document header that includes the description stated by your institution in the Endowment parameter for the process.

• Has a transaction sub-type of Non-Cash (N).

• Has a transaction source type of Automated Entry (A).

• Contains the security ID and registration code of the tax lot records affected.

• Contains an entry in the Decrease or Increase transaction lines as follows:

o If the value of the transaction is negative, the distribution represents a loss to the holding value, so the transaction lines are added to the e-doc's Decrease transaction lines.

o If the value of the transaction is positive, the distribution represents a gain to the holding value, so the transaction lines are added to the e-doc's Increase transaction lines.

Using the MAXIMUM_TRANSACTION_LINES parameter, your institution specifies the maximum number of transaction lines that may be added to an e-doc through this batch process.