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Search Trust Tax (ONESOURCE) Support Help and Support.

This article applies to:

  • Product: ONESOURCE Trust Tax

Reviewing Assets

As shown in the following graphic, the WSC Plus page includes the
Review Assets
 and
Review Open Tax Lots
 columns.
The
Review Assets
 column is used to ensure each account and asset combination is balanced. The
Review Open Tax Lots
 column is used to balance to year-end assets held.
This section describes how to review assets using the
Review Assets
 column. The review process consists of reviewing opening and closing positions, purchase and sales data, and additional activities. It also includes clearing out of balance conditions and WSC HIT messages. You can review assets as many times as is necessary to ensure each account and asset combination is balanced. An account and asset combination is balanced when:
Opening Position + Purchases + Transfers In-Transfers Out-Sales = Closing Position
For all asset types, income and original face value or units held must be a positive number. All purchase, sales and transfers must have original face value for OID, REMIC or MBS assets, or number of units for MLP and UIT assets.
For OID assets, qualified stated interest payments are reportable in addition to the OID accrual, and Non-Qualified Stated Interest (NQSI) payments represent a return of principal. NQSI distributions are not reportable income. The amount of NQSI decreases the basis and is posted to tax code 924 (Adjustments of Carrying Value).
For UITs that contain commodities, a detail statement supporting cost basis adjustments is generated by default. You can use this detail statement to update sales transactions with the revised cost basis.
For OID, REMIC and MBS assets, principal paydowns are recognized only if the first characters for the TAV Action Description are PAID DOWN or BUY DOWN.
To review assets for an asset type:
  1. From the WSC Plus page, select the
    Select
     link in the
    Review Assets
     column for the asset type you want to review.
  2. The
    Asset Summary
     collapsible section for the asset type opens. The following graphic shows the
    Asset Summary
     collapsible section for OID assets:
  3. The following table includes a description for each column in the grid under the
    Asset Summary
     collapsible section:
  4. Review the columns for each account and asset combination. Be aware of combinations with zero amounts in the
    Opening Position
    ,
    Purchase Summary
    ,
    Sales Summary
     and
    Closing Position
     fields.
  5. If an asset is out of balance, the
    Out of Balance
     column will display a
    Y
    . See Clearing Out of Balance Conditions for details.
  6. If a WSC HIT message is associated with an asset, the
    Exclude from WSC Extract
     column displays a
    Y
    . See Clearing WSC HIT Messages for details.
  7. Select
    Save
    frequently to save your updates.
  8. If you make changes during the review process, you should prepare and review assets again to confirm each account and asset combination is balanced.

Clearing Out of Balance Conditions

The
Out of Balance
 column in the grid under the
Asset Summary
 collapsible section on the WSC Plus page indicates whether an out of balance condition exists for each account and asset combination. A
Y
 displays if the account and asset combination is out of balance, and a
N
 displays if the account and asset combination is balanced.
note
When reviewing the
Out of Balance
 column, you can display the account and asset combinations that are out of balance before the combinations that are balanced by applying a filter. To apply the filter, select the filter bar below the heading of the
Out of Balance
 column, select
Y
, select Filter then select
Apply All Filters
.
To resolve an out of balance condition, determine whether the opening and closing positions are out of balance or if there are incorrect purchases, transfers or sales. For UIT assets, the most common issue to resolve is distributions that include an interest and a principal component. If the principal component is posted separately from the income component, the principal component must be posted to tax code 519 (Short-Term Sales Proceeds) or 521 (Long-Term Sales Proceeds), and the
TAV Action Description
 must be set to BUY DOWN or PAID DOWN.
To review and correct purchases, transfers and sales information:
  1. From the
    Asset Summary
     collapsible section on the WSC Plus page, select the
    Asset ID
     link for the account and asset combination.
  2. On the Asset Detail pop-up window, review and correct the asset details.
  3. For MLP assets, the collapsible sections on the Asset Detail pop-up window allow you to review and correct the name and address the MLPs will use to send the prepared Schedule K-1s, the MLP detail, and MLP excluded activities.
  4. The
    Custodial TIN (for Deferred, 1099-R accounts only)
     field under the
    Name and Address for MLP Processing for Schedule K-1's
     collapsible section only populates for accounts that have processed a 1099-R. The field displays the TIN of the 1099-R payer associated with the account after the return is processed. However, if the return has not been processed, an error message displays. To remove the error message, process the return.
  5. For OID, UIT, REMIC and MBS assets, the collapsible sections on the Asset Detail pop-up window allow you to review and correct purchase transfer and sales data, additional activities (such as income and buydown activities), and any excluded activities. Under the
    Detail
     collapsible section, you can select the
    Settlement Date
     link for sales to access and correct the details of a particular sale. Be sure to select
    Save
    to save your corrections. To move from the sales detail pop-up back to the Asset Detail pop-up, select
    Close
    .
  6. As you correct purchase, transfer and sales information, be sure to select
    Save
     in the top left of the pop-up window.
  7. Select
    Close
     when you want to return to the
    Asset Summary
     collapsible section on the WSC Plus page.
  8. You should prepare and review assets again to confirm each account and asset combination is balanced. This is especially important if a bridge file was loaded to ONESOURCE Trust Tax after you completed your review.
To review and correct opening or closing positions:
  1. From the
    Asset Summary
     collapsible section on the WSC Plus page, select the
    Opening Position
     link or the
    Closing Position
     link for the account and asset combination.
  2. On the Open Tax Lot pop-up window, review and correct the position data.
  3. As you correct purchase, transfer and sales information, be sure to select
    Save
     in the top left of the pop-up window.
  4. Select
    Close
     when you want to return to the
    Asset Summary
     collapsible section on the WSC Plus page.
  5. You should prepare and review assets again to confirm each account and asset combination is balanced. This is especially important if a bridge file was loaded to ONESOURCE Trust Tax after you completed the review and balance assets task.

Clearing WSC HIT Messages

The
Contains WSC Hit Code
 column in the grid under the
Asset Summary
 collapsible section on the WSC Plus page displays whether account and asset combinations have an associated WSC HIT message. A
Y
 displays if there is a WSC HIT message, and a
N
 displays if there is no WSC HIT message.
When reviewing the
Contains WSC Hit Code
 column, you can display the account and asset combinations that have an associated WSC HIT message before the combinations that do not by applying a filter. To filter the column, select the filter bar below the heading of the
Contains WSC Hit Code
 column, select
Y
, select Filter then select
Apply All Filters
.
WSC HIT messages alert you when one or more transactions or sales for an asset do not meet certain requirements. For example, each sale of OID must have original face value. If the original face value is missing for a sale of OID, a WSC HIT message will be associated with it. You can clear the WSC HIT message by adding the original face value amount and saving your changes.
To review and clear a WSC HIT message:
  1. From the
    Asset Summary
     collapsible section on the WSC Plus page, select the
    Asset ID
     link for the account and asset combination.
  2. On the Asset Detail pop-up window, review the
    WSC Hit Message
     column.
  3. Use the following table to determine what you need to do to clear the message:
    WSC HIT Message
    Condition Triggering WSC HIT Message
    To Clear the WSC HIT Message
    Original Face Value required.
    Transactions
    OID & REMIC & MBS
    Original Face Value = 0 AND Tax Code = 519, 520 AND TAV Action Description <> BUY DOWN
    OR
    Original Face Value = 0 and Tax Code = 946, 950, 951
    Add amount for Original Face Value.
    Change Tax Code.
    Change TAV Action Description.
    Income or Principal Cash must be negative. (Taxable Amount for manual entries.)
    Transactions
    Tax Code = 946 AND Income/Principal Cash >= 0
    OR
    Tax Code = 946 AND Taxable Amount >= 0 (manually entered transactions)
    Delete existing and add new.
    Change Taxable Amt for manual entries.
    Income or Principal Cash must be positive. (Taxable Amount for manual entries.)
    Transactions
    Tax Code = 519, 520 AND Income/Principal Cash >= 0
    OR
    Tax Code = 519, 520 AND Taxable Amount >= 0 (manually entered transactions)
    Delete existing and add new.
    Change Taxable Amt for manual entries.
    Income or Principal Cash must be zero. (Taxable Amount for manual entries.)
    Transactions
    Tax Code = 950, 951 AND Income/Principal Cash >= 0
    OR
    Tax Code = 950, 951 AND Taxable Amount >= 0 (manually entered transactions)
    Delete existing and add new.
    Change Taxable Amt for manual entries.
    Taxable Amount must be positive.
    Transactions
    Tax Code = 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, 13, 83, 85, 86, 121, 501, 502, 507
    AND
    Taxable Amount < 0 and Transaction Code <> 300 (purchase of accrued interest)
    Change Taxable Amount.
    Change Tax Code.
    Change Transaction Code.
    Original Face Value must be positive.
    Transactions/Sales
    OID & REMIC & MBS
    Sale Original Face Value <= 0 AND TAV Action Description <> BUY DOWN
    OR
    Transaction Original Face Value <= 0 and Tax Code = 946, 950, 951
    Change Original Face Value.
    Change TAV Action Description
    Change Tax Code
    Units must be positive.
    Transactions/Sales
    UIT & MLP
    Sale Units <= 0 AND TAV Action Description <> BUY DOWN
    OR
    Transaction Units <= 0 AND Tax Code 946, 950, 951
    Change Units.
    Change TAV Action Description.
    Change Tax Code.
    Inconsistent Tax Effective Date. (MBS Distributions)
    Transactions
    MBS
    Posting Date = Tax Effective Date
    AND
    Tax Code = 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, 13, 83, 85, 86, 121, 165, 166, 167, 168, 194, 396, 501, 502, 507, 942, 945 OR Transaction Code = 300, 301 AND Tax Code <> 991
    OR
    Tax Code = 519,521,950 AND TAV Action Description = BUY DOWN
    Use PAN-level options on the Options and Overrides page to resolve.
    Change one of the dates.
    Inconsistent Trade Date. (MBS Buy Downs)
    Sales
    MBS
    Posting Date = Tax Effective Date
    AND
    TAV Action Description = BUY DOWN
    Use PAN-level options on the Options and Overrides page to resolve.
    Change one of the dates.
    Sales Price must be positive.
    Sales
    Sale is not a Free Delivery AND Sales Price < 0
    Change Sales Price.
    Indicate Free Delivery.
    Invalid taxpayer information.
    MLP
    MLP with invalid TIN, name, address, city, state, zip.
    Update taxpayer information.
    Invalid Original Purchase Trade Date.
    Open Tax Lot
    UIT Commodity Trusts
    Missing or invalid Original Purchase Trade Date on an Open Tax Lot for UIT Commodity.
    Add/change date.
    Invalid Original Settlement Date.
    Open Tax Lot
    UIT Commodity Trusts
    Missing or invalid Original Purchase Settlement Date on an Open Tax Lot for UIT Commodity.
    Add/change date.
    Adjusted Basis must be positive
    Open Tax Lot
    UIT Commodity Trusts
    Blank, zero or negative Adjusted Basis on an Open Tax Lot for UIT Commodity.
    Add/change amount.
    Cost Basis must be positive.
    Transactions
    UIT Commodity Trusts
    Tax Code = 951 AND Cost Basis <= 0
    Add/change amount.
    Invalid Acquisition Date.
    Transactions/Sales
    UIT Commodity Trusts
    Sale/Tax Lot Acquisition Date is missing or invalid
    OR
    Transaction Original Acquisition Date is missing or invalid
    Add/change date.
    Cost or Basis required.
    Sales
    UIT Commodity Trusts
    Cost or Basis amount not provided.
    Add cost or basis.
    No match to existing holding.
    Transactions/Sales
    UIT Commodity Trusts
    Sale or Free Delivery
    AND
    No Open Tax Lot or Transfer In or Purchase with a matching Acquisition Date or Tax Lot ID
    Add/change date or Tax Lot ID. (on the Open Tax Lot or Transfer In or Purchase that represents the units in the Sale or Free Delivery)
    Open Tax Lot error.
    Open Tax Lot
    UIT Commodity Trusts
    Displayed on the UIT Master screen under WSC HIT Message column whenever one of the above Open Tax Lot messages exists for an open tax lot.
    See Open Tax Lot items above.
    Both Free Delivery and DIK checked.
    Sales
    UIT Commodity Trusts
    The checkbox for both Free Delivery and Distribution In Kind is set on the sale.
    Deselect one of the check boxes.
    Position does not match Open Tax Lots.
    Open Tax Lot/Positions
    OID & UIT
    The sum of the Open Tax Lots does not match the Position amount.
    Correct Open Tax Lots or Position.
    Sales Price must be zero for Free Deliveries.
    Sales
    Sale marked as Free Delivery includes an amount in Sale Price.
    Zero out Sale Price.
    Uncheck Free Delivery option.
    Purchase with invalid Transaction Type.
    Transactions
    Tax Code = 946 AND Transaction Type = 300
    Change the Tax Code.
    Change the Transaction Type.
    Invalid Action Description for Free Delivery.
    Transactions
    Tax Code = 950 and TAV Action Description = BUY DOWN.
    Change TAV Action Description.
    Change Tax Code.
  4. Correct the data then select
    Save
     at the top left of the Asset Detail pop-up window to save your changes.
  5. Select
    Close
     when you want to return to
    Asset Summary
     collapsible section on the WSC Plus page.
  6. You should prepare and review assets again to confirm the WSC HIT message is resolved. This is especially important if a bridge file was loaded to ONESOURCE Trust Tax after you completed the review and balance assets task.