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Create an Entity for Insurance Accounting

Create an Entity for Insurance Accounting

Owned by Nancy Cohn (Deactivated)
Last updated: Feb 14, 2024 by Kinga Huszno
2 min read

To ensure Eagle STAR for Insurance accounting is consistent with the principles of Statutory Accounting, you must follow the Eagle STAR procedure for adding a basic entity, and supplement these procedures by adding the insurance-related fields and elections, as described in this section.

To create an entity for Eagle STAR for Insurance processing:

  1. Do one of the following:
    - In Portfolio Data Center, in the left navigation pane, click Portfolio Desk > Accounting Portfolio Setup > Entities > Create/Edit Entity.
    - In Accounting Center, in the left navigation pane, click Setup > Portfolio Setup > Entities > Create/Edit Entity.

  2. Complete the options on the panel.
    A description of key insurance-related fields follows this procedure. For a general description of entity-related fields, see Create/Edit Entity Panel Options.

  3. Click Submit.
    The system adds the entity to the RULEDBO.ENTITY table.

Create/Edit Entity Panel Options for Eagle STAR for Insurance

The following table describes the key insurance-related options and elections required for ISTAR processing.

Option

Description

Option

Description

Entity Name

Specifies the name of the portfolio or composite.

Entity ID

Specifies the entity identification code. The Client record uses the entity code to associate to the entity.

Accounting Basis

Specifies the primary accounting basis.

Set the value to STAT. STAT indicates Statutory Accounting.

NOTE: The STAT represents that accounting data that is pushed to the ISTAR warehouse. It is not required that STAT is the primary basis of the entity to build Insurance data.

Wash Sale Inhibit Indicator

Determines whether to inhibit wash sales.

Set the value to Yes, as required for the STAT accounting basis.

Cash Div Cash Entitlement Level

Identifies lot level or position level cash entitlements for cash dividends.

Set the value to Lot, as required by the STAT accounting basis.

Primary Amortization/Accretion Rule

Specifies the accounting rule.

You must set Recognize OID to No in the selected amortization rule, as required for the STAT accounting basis.

Postmatrix Type

Specifies the type of post matrix. Options include:

  • Core. Default.

  • Insurance. Purchased interest is reflected as a debit (DR) to Interest Income.

Set the value to Insurance.

Final Close Income Recognition Date

Determines whether income on close lots posts the full amount of accruals through settlement date on trade date or continues to accrue through settlement date.

The preferred election for the STAT accounting basis is Trade Date to accommodate statutory reporting on the schedules.