Manage Basis Processing Rules

A basis processing rule, also called an entity basis processing rule, allows you to apply a set of income characteristics defined using a security processing rule to one or more securities for a specific portfolio/accounting basis. For example, you can create a security processing rule to make a redeemable preferred stock eligible for amortization only when processed for a specific portfolio. During processing, the system uses the income characteristics defined at the basis processing rule level to override any corresponding income characteristics defined at the security level.

A basis processing rule for a given security supersedes any security processing rule assigned directly to that security. You can change the basis processing rule to allow for historical changes. For example, if the security is eligible for amortization but you need to disable amortization for a period of time, you must accomplish this using the amortization/accretion rule rather than the basis processing rule.

To create a basis processing rule:

Do one of the following:
- In Portfolio Data Center, in the left navigation pane, click Portfolio Desk > Accounting Portfolio Rules > Accounting Basis > Create Basis Processing Rule.
- In Accounting Center, in the left navigation pane, click Setup > Portfolio Rules > Accounting Basis > Create Basis Processing Rule.
You see the Create Basis Processing Rule panel.
Complete the options on the Create Basis Processing Rule panel.
If you want the basis processing rule to apply to additional securities, use the pane at the bottom of the panel, as follows:
- Click the lower pane.
- Right-click and select Add Rows.
- Enter the number of rows you want to add in the Add Rows dialog box and click OK. You need to add a row for each additional security you want to associate with the rule.
- Complete the fields on each row you added.
Click Submit.

After you create a basis processing rule, associate the rule with the appropriate portfolio/accounting basis (or multiple portfolios/bases). You can select the rule in the Basis Processing Rule Name field (tag 7152) in the Create/Edit Entity panel and the Add a Basis to a Portfolio panel.

Create Basis Processing Rule Panel Options

In the Create Basis Processing Rule panel, when you add a basis processing rule, you can select various options based on the requirements of your business.

Option	Tag	Description
Query Basis Processing Rule
Basis Processing Rule Name	2290	Specifies the name of a basis processing rule that controls processing for a set of securities in an entity/accounting basis.
Add Entity Basis Processing Rule
Rule Name	2761	(Required) Specifies the name of the basis processing rule that controls processing for a set of securities in an entity/accounting basis.
Basis Processing Rule ID	2965	Displays the unique identifier for the corresponding basis processing rule name.
Asset ID Type	1432	Specifies the primary asset identifier type for the security associated with the basis processing rule, such as CUSIP, ISIN, and SEDOL.
Asset ID	14	(Required) Specifies the identification number of the primary asset ID type for the security associated with the basis processing rule.
Issue Name	961	Specifies the name of the security associated with the basis processing rule.
Security Processing Rule Name	3197	(Required) Specifies the name of the security processing rule associated with the basis processing rule, A security processing rule defines a set of income characteristics that you can apply to a security.
Security Processing Rule ID	2964	Displays the unique identifier for the selected security processing rule.
Begin Date	71	(Required) Specifies the begin date when the basis processing rule is in effect.
End Date	73	Specifies the end date when the basis processing rule is in effect. If the end date is not known, leave this field blank. If you need to change a basis processing rule for a given security, you must terminate the current rule by posting an end date, and creating a subsequent rule that has a more recent begin date. The end date of the current row and the begin date of the new row cannot occur on the same day or overlap.