Corporate Actions 

Use

Corporate actions are part of position management in the securities area. You can use this function to represent changes made to the capital structure by the issuer for classes in your position.

Prerequisites

Corporate action category

Short text

00

Manually generated

01

Stock split

02

Stock swap

03

Capital reduction

04

Capital increase from retained earnings

05

Issue currency changeover

06

Transfer new stock to old stock

07

Post subscription rights

80

Manually generated

Features

Standard functions are available for the following capital changes:

You can use the Manually Generated Corporate Actions function for corporate actions that are not supported by the standard functions in the Securities Management area.

Corporate actions are based on the following status concept:

Status

Name

Remarks

0

Planned
  • The corporate action has status 0 once you have created and saved it in the system.
  • You can change, delete or activate the corporate action.
  • You cannot post it.

1

Activated (no flows exist)
  • This status enables you to transfer a planned corporate action (status 0) or one you have just created by choosing Corporate action ® Activate.
  • You can post the corporate action.
  • Deactivate resets the corporate action to status 0.

2

Activated (posted flows exist in at least one company code)

  

3

Activated (posted and reversed flows exist in at least one company code)

  

4

Activated (reversed flows exist)
  • You can transfer the corporate action to status 5 using the deactivate function.

5

Reversed (corporate action is deactivated, all flows are reversed)
  • You can no longer post the corporate action.

Activities

Sequence of activities for performing a corporate action:

  1. Creating a Corporate Action

    2. You create corporate actions for all company codes. When you create a corporate action, no positions are updated and no G/L documents and subledger documents are generated.

  2. Activating a corporate action

    3. If the corporate action is transferred to status 1 (activated), you can make postings in each company code.

    See also: Editing a Corporate Action

  3. Period-End Closing

    4. You have to perform period-end closing for all relevant reference securities on the key date of the corporate action before you can carry out a corporate action.

    You must not execute period-end closing after the key date of the corporate action for securities whose positions are affected by the corporate action.

  4. Creating a Position Indicator

    5. You create securities account position indicators for any new positions.

  5. Posting a Corporate Action

    6. You post corporate actions for each company code. This updates the company code positions and generates the FI documents (posting log), where applicable. The corporate action is automatically transferred to status 2/3.

  6. If you have performed a stock split, you have to change the nominal value of the stock in the class data manually.
  7. Reversing a Corporate Action