A basis processing rule, or 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:
- From any Eagle window, click the Eagle Navigator button to access the Eagle Navigator.
- Enter Add Entity Basis Processing Rule in the Start Search text box.
You see the Add Entity Basis Processing Rule panel.
- Complete the options on the Add Entity Basis Processing Rule panel.
If you want the entity basis processing rule to apply to additional securities, use the pane that appears on the bottom of the Add Entity Basis Processing Rule 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 an entity 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 Add/Change Entity panel and Add/Change Accounting Basis panels.
Entity Basis Processing Rule Panel Options
In the Add Entity Basis Processing Rule panel, when you add an entity basis processing rule, you can select various options based on the requirements of your business.
Option | Tag | Description |
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Query Basis Processing Rule |
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Basis Processing Rule Name | 2290 | Specifies the name of an entity basis processing rule that controls processing for a set of securities in an entity/accounting basis. |
Add Entity Basis Processing Rule |
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Rule Name | 2761 | (Required) Specifies the name of the entity 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 entity basis processing rule name. |
Asset ID Type | 1432 | Specifies the primary asset identifier type for the selected security, such as CUSIP, ISIN, and SEDOL. |
Asset ID | 14 | (Required) Specifies the identification number of the primary asset ID type for the selected security. |
Issue Name | 961 | Specifies the name of the security associated with the entity basis processing rule. |
Security Processing Rule Name | 3197 | (Required) Specifies the name of the security processing rule associated with the entity 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 entity basis processing rule is in effect. |
End Date | 73 | Specifies the end date when the entity basis processing rule is in effect. If the end date is not known, leave this field blank. |
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