Business Rules

Note: 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 liability increase transactions:

      When you initiate a document, you must select a Transaction Sub Type value (‘cash’ or ‘non-cash’).

      You must select or enter a valid, active security. Only one security record may be inserted in each transaction.

      The security specified must have a liability class code.

      After you enter a security, the system displays the associated security name, class code, class code description, security transaction code and description, and tax lot indicator.

      You must enter a valid, active registration code.

      You must enter a number greater than zero for the transaction units in the transaction line.

      When a transaction line is added, the transaction amount must equal units/shares because liabilities are priced at $1 per unit.

      The tax lot indicator for the security is ‘No’. Consequently, for each transaction line added, the system adds a record to the Holding Lot table and shows the data in the Tax Lot Lines tab. This stored data includes:

The document number from the Doc Nbr field in the e-doc’s header.

The line number from the transaction line on the e-doc.

The holding lot number set at 1.

The number of units from the transaction units.

The holding cost from the transaction amount times negative 1 (-1).

Acquired date.

      The Etran code for the security must have an appropriately identified General Ledger object code record—one that matches the chart for the KEMID-associated General Ledger account in the transaction line:

For an income transaction, the chart must match the chart of the active KEMID-GL Link record for income.

For a principal transaction, the chart must match the chart of the active KEMID-GL Link record for Principal.

      When a transaction is reversed (via the error correction button), the system generates a new e-doc using all of the information in the original e-doc with all signs reversed for units and amounts.

      If the transaction is for principal, the KEMID must have an active General Ledger account for principal.

      If the Transaction Sub-Type is ‘Cash,’ you cannot enter an Etran code in the transaction line.

      If the Transaction Sub-Type is ‘Non-cash,’ you must enter an Etran code in the transaction line.

      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.

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