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:
o The line number from the transaction line on the e-doc.
o The holding lot number set at 1.
o The number of units from the transaction units.
o The holding cost from the transaction amount times negative 1 (-1).
o 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:
o For an income transaction, the chart must match the chart of the active KEMID-GL Link record for income.
o 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.