During the term of the stock, there are several actions needed which are explained in more detail below.
For the period end closing and the valuation you need to set security prices. Use the Enter Security Prices app to manually perform this task.
After defining the Security Class ID Number and the Exchange you can enter the price date, price type (for example, spot, bid, ask) and the price of the security. The system would also display the source of the rate (for example, manual entry or through data-feed).
Furthermore, the system displays the yearly high and low points of the security price/rate.
You use the Run Accrual/Deferral app to determine expenses and revenues from financial transactions or positions for a given period and to assign them to the correct accounting period, irrespective of when they were due.
The amount in time is first calculated and then applied as the basis for calculating the amount to be accrued/deferred. The amount in time is the partial amount of the flow relating to the period from the Term From date until the key date of the accrual/deferral. It is calculated using the selected accrual/deferral method.
For each selected position/transaction and for a given key date, the system determines the profit-related flows for which accruals or deferrals need to be created.
The system checks whether all the flows relevant for accrual/deferral and falling before the key date have been posted. If this is not the case, the system issues a warning message. The warning message informs you that flows that are relevant for accrual/deferral and for which the due date has passed have not yet been posted and are therefore not included in the P&L statement.
The accrual/deferral function checks whether and when the flow to be accrued/deferred was posted and whether this is in accordance with the accrual/deferral currently calculated.
Use the Enter Book Values for Manual Valuation app to enter the new book values for treasury positions for a specific key date.
After you have entered the new book values, you can start the valuation of the treasury positions using the Run Valuation app executed with the valuation category Manual Valuation With Reset or Manual Valuation Without Reset.
This valuation categories allows you to write-up or write-down a position to the book values entered in position currency and valuation currency in the Enter Book Values for Manual Valuation app, independent of the valuation rules defined.
The following valuation steps support manual valuation:
- Security valuation
- Foreign currency valuation
- One-step price valuation
- Index valuation
Perform the key date valuation for the selected valuation-area-dependent treasury positions with the Run Valuation app.
There are several prerequisites in order to run the valuation. The rates, prices, and NPVs required for the valuation must be available in the price/rate and NPV tables. Also all the business transactions before the valuation key date must be fixed.
Perform the key date valuation according to the settings in the relevant position management procedure. Use the following valuation categories:
- Year-End Valuation
- Mid-Year Valuation with Reset
- Mid-Year Valuation Without Reset
After having set all the needed valuation parameters, the posting control and the output details the system values the selected positions and posts the corresponding valuation flows.
When you perform a key date valuation, the system sets an internal block to prevent operational business transactions that affect position amounts from being created before the valuation key date when the valuation has not been reversed previously.
In our example, the system also looks at the security price change and valuates the difference according to the Position Management Procedure. The highlighted sections show the valuation area DE0 where there is the Position Management Procedure 3ESL maintained. Here, the system would not consider the price change (increase) since it strictly lowers the value principle.
Issues enterprises often over dividends for on their stocks. To map this attribute, use the app Manage Securities Classes.
At your Securities Classes go to the Conditions tab. Through the Conditions Items, it is possible to set the effective dates and the dividend amount per share.
The Conditions Detail features further functions for the date calculation.
After the dividend settings were made in the Manage Securities Classes app using the Execute Debit Position - Manual Debit Position app to edit and post flows generated by the conditions of a security, such as dividends, with scheduled status.
For dividends (profit distribution or accumulated dividends), you can choose to capitalize the dividend full or partial.
There are several prerequisites needed before you can perform the steps in the app. These include the following:
- Enter the required market data (such as factor values for factor based dividends of investment certificates).
- Update the condition data for dividends in the Manage Securities Classes app, when the issuer published the amount of the dividends.
- Use the Update Planned Records for Securities app.
- Post all other flows that affect the relevant security class ID numbers and securities account up to the due date for which the debit position run is carried out.
- Run the Automatic Debit Position and Postings - Securities Accounts app for the accrued dividend flows.
The automatic debit position and manual debit position (incoming payments) functions are closely linked. Both functions are used to process flows generated by the conditions. You process many flows together when you use the automatic debit position function (accrued dividends), whereas the manual debit position (incoming payments) function enables you to process each flow individually and offers the possibility to capitalize the accumulated dividend/profit distribution flows. Here, you can also make changes to the flows.
Use the interactive graphic to learn more about the corporate actions available.
Using the Manage Corporate Actions app, you can create a corporate action to make the change that the issuer has made to the capital structure for classes in your treasury position.
Specify the corporate action category and type to create a new entry. In the Basic Data area, enter the key date of the position change and a description of the corporate action.
If you save the corporate action, it is assigned status 0 (Planned). You can then still change it or delete it. You can post the corporate action only after it has been activated.
You can use the Post Corporate Actions app to update the company code positions and to generate the FI documents (posting log), where applicable.
In order to run the app, some prerequisites must be met, which are as follows:
- The corporate action must be activated.
- Do not carry out valuation after this key date for any security positions affected by the corporate action.
- You must have created a position indicator for any new positions.
After entering all the needed data for the calculation date, posting date, company code - for example, you can post the corporate action.
When you post the corporate action, the company code positions are updated and the related FI documents are generated, where required.
With this feature, you can transfer your securities positions at their book values from one securities account to another using the Execute Securities Account Transfer app. The securities account transfer can affect the general ledger as well as the subledger since, by changing the securities account for a position (= change in the subledger accounting), you can change both the valuation class and the account assignment reference if the target securities account has a different account assignment reference in the position indicator to that of the source securities account (= changes in the general ledger accounts).
You can reverse the securities account transfer using the Reverse Securities Account Transfer app.
The securities account transfer takes the transfer amount at book value from the source securities account and posts it to the target securities account. The system generates the associated flows depending on the position management procedure.
You can display the quantities of the security ID number in the source and target securities account before the securities account transfer.
You can display the source and target securities account cash flows including the securities account transfer.
There can not be any fixed, condition-based transactions (such as repayment) after the key date of the securities account transfer for the positions involved.
With this feature, you can transfer the units/nominals of a treasury position to another position with different account assignments (such as cost center, WBS element, functional area, profit center). In this internal transfer, the position component values are transferred proportionally according to the transfer category of the target position management procedure.
If you have activated Public Sector Management and use the fund and grant account assignments as differentiation criteria for your treasury positions, the account assignment transfer can also be used to transfer a treasury position from one fund to another or from one grant to another.