Process Portfolio Definition Details

20.1 Process Portfolio Definition Details

This topic describes the systematic instruction to process Portfolio Definition Details.

You can invoke the Portfolio Maintenance screen, from the Application Browser. If you are setting up a new portfolio, click new icon on the toolbar. The Portfolio Definition screen is displayed without any details.

On the Home page, specify SEDXPFNL in the text box, and click next arrow.

If you are calling a Portfolio Definition record that has already been defined, choose thex screen. From the Summary screen, double-click a portfolio to open it.

Security Portfolio Definition screen is displayed.

Figure 20-1 Security Portfolio Definition

Description of "Figure 20-1 Security Portfolio Definition"
On the Security Portfolio screen, specify the fields.

The Securities Portfolio Definition screen consists of a header, a footer containing fields that are specific to the portfolio you are defining and three tabs (Contract main, Main preferences and the Detail preference). Also displayed is a vertical array of six icons, along the lines of which you can enter details of a portfolio. Portfolio details are grouped into screens according to the similarities they share.

On the Security Portfolio Definition screen, click Detail Preference.

Detail Preference screen is displayed.

Figure 20-2 Detail Preference

Description of "Figure 20-2 Detail Preference"

Table 20-1 Detail Preference - Field Description

Field	Description
Accrue Discount Method	Specify the accrue discount method. If you select the redemption type as bullet, then the system will allow you to select the discount method as constant yield /exponential / straight line/ weighted moving average. However, for any other type of redemption, you can select only the type as constant yield.
Accrue Premium Method	Specify the accrue premium method. If you select the redemption type as bullet, then the system will allow you to select the discount method as constant yield /exponential / straight line/ weighted moving average. However, for any other type of redemption, you can select only the type as constant yield.
Reversal of Disc/Prem Accr	Check this box to indicate that the premium or discount that has been accrued using the ‘Weighted Moving Average’ method should be reversed. If this is checked, the amortization accrual done using the ‘Weighted Moving Average’ method is reversed on the following BOD. During EOY, discount/premium accrual will be realized, that is, accrual will not be reversed as part of the same EOD/BOD batch (SEAUTDLY). This value is defaulted from the portfolio class level to the portfolio product level, where you can amend it. From the portfolio product level, it is defaulted to the portfolio definition level. Here too, you can amend it. The value at the portfolio definition level is considered as the final value and the reversal is determined by it.

Field

Description

Accrue Discount Method

Specify the accrue discount method. If you select the redemption type as bullet, then the system will allow you to select the discount method as constant yield /exponential / straight line/ weighted moving average.

However, for any other type of redemption, you can select only the type as constant yield.

Accrue Premium Method

Specify the accrue premium method. If you select the redemption type as bullet, then the system will allow you to select the discount method as constant yield /exponential / straight line/ weighted moving average. However, for any other type of redemption, you can select only the type as constant yield.

Reversal of Disc/Prem Accr

Check this box to indicate that the premium or discount that has been accrued using the ‘Weighted Moving Average’ method should be reversed. If this is checked, the amortization accrual done using the ‘Weighted Moving Average’ method is reversed on the following BOD. During EOY, discount/premium accrual will be realized, that is, accrual will not be reversed as part of the same EOD/BOD batch (SEAUTDLY).

This value is defaulted from the portfolio class level to the portfolio product level, where you can amend it. From the portfolio product level, it is defaulted to the portfolio definition level. Here too, you can amend it. The value at the portfolio definition level is considered as the final value and the reversal is determined by it.

Parent topic: Define Portfolio