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 security transfer transactions:

When you initiate the e-doc, the system displays a Transaction Sub-Type value of Non-Cash. You cannot change this entry.

You must select or enter an active, valid security in the Security Details tab. Only one security record may be inserted in each transaction.

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

You must enter a valid, active registration code.

You must enter a valid Etran code in the transaction line.

After you add a transaction line, the system displays the appropriate entries in the Tax Lot Lines tab. If the transaction line units/shares are edited or the transaction line is deleted, the records in the Tax Lot Lines tab are adjusted automatically.

The Etran codes for the security and in the transaction line(s) must have an appropriately identified General Ledger object code recordone that matches the chart for the KEMIDs 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.

The total of the transaction amount (income plus principal) in the From transaction lines must equal the total of the transaction amount in the To Transaction lines (income plus principal).

The total of the transaction units/shares (income plus principal) in the From transaction lines must equal the total of the transaction units/shares in the To Transaction lines (income plus principal).

The following business rules are unique to the From transaction lines:

You may specify only one KEMID in the From transaction line.

This transaction can take place only at the original cost (carry value) of the security. You specify only the units of the asset to be reduced. The system calculates the amount of the transaction based on the rules for the tax lot indicator as it does for an asset decrease non-cash transaction. No gain or loss is recorded in the tax lot line(s).

For information about the rules for the tax lot indicator for an Asset Decrease non-cash transaction, see Asset Decrease.

The KEMID must hold sufficient units of the security to complete the transaction.

When you add a From transaction line, if the KEMID on that line has a permanent restriction and if the transaction is for principal, the system displays a warning message indicating that the transaction will reduce the value of the endowment.

All calculations for each holding tax lot are rounded according to the rules for rounding.

The tax lot lines calculations determine only the number of units and the carry value of those units. The system makes no calculations beyond that point because no gain or loss is involved in the transaction.

For each lot in the Tax Lot Lines tab, the system adds a record to the Holding Lot table and shows the data in the Tax Lot Lines tab. The data includes:

o The document number from the Doc Nbr field in the e-docs header.

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

o The holding lot number from the holding lot number for the KEMID and security.

o The number of units from the tax lots line times negative 1 (-1).

o The holding cost from the tax lots line times negative 1 (-1).

o Acquired date.

After the system calculates the tax lot lines records, it displays the total of the lot holding cost in the Transaction Amount field on the transaction line. This value is a positive value for both assets and liabilities. The system also updates the amount totals at the bottom of the From section of the e-doc.

The following business rules are unique to the To transaction lines:

You may specify more than one KEMID in the To transaction lines.

You must enter only the number of units being transferred to the KEMID in the transaction line. The system calculates and displays the transaction amount.

The system automatically generates the transaction lot line(s) when the non-cash transaction line is added.

If the tax lot indicator for the security is No, all transaction lines in the Tax Lot Lines tab are created for the default tax lot (tax lot 1). This stored data includes:

o The document number from the Doc Nbr field in the e-docs header.

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.

o Acquired date.

If the tax lot indicator for the security is Yes, 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 document number from the Doc Nbr field in the e-docs header.

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

o The holding lot number set at the next sequential number for the KEMID and security.

o The number of units from the transaction units.

o The holding cost from the transaction amount.

o Acquired date.

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Routing