Liability Decrease

Note: A liability represents an amount the KEMID owes to the institution or another KEMID. It represents a borrowing, perhaps to cover an overdrawn balance or to relieve an expense incurred where the funds to cover the expense were not available. Liabilities are not marketable securities and typically have a security ID that reflects an internal security (beginning with 9 or an alpha character).

Warning! In the KFS Endowment module, liability units and liability value for a KEMID are inversely related (decreasing units = increasing value). Liabilities are recorded in the holding table as a negative cost, while units held are positive.

The Liability Decrease e-doc allows you to reduce the holdings of a liability for a specified KEMID. Reducing the number of liability units held increases the KEMIDís liability balance for the KEMID.

When a liability decrease transaction is cash-based, it decreases the cash balance of the KEMID, decreases the number of liability units held, increases the liability value or balance, and does not change the overall value of the KEMID. When no cash is involved, the transaction has no effect on the cash balance, but an expense or (more rarely) an income entry is made to the KEMID to offset the reduction in the liability value. This activity changes the overall value of the KEMID.

You may enter only one liability per e-doc. The same liability may be processed to multiple KEMID holding records by entering multiple transaction lines in the document.


Document Layout

Process Overview