Adjusting Unit-Quoted Securities (SAP Library - European Monetary Union: Euro (CA-EUR))

Adjusting Unit-Quoted Securities

1. Stocks
Features

A range of changeover variants are currently being discussed for stocks. However, these do not affect position management in the SAP R/3 System, since the positions in R/3 are managed on a unit basis.

Changeover variants:

Change over to unit stocks without nominal value.

Change over to stocks with a nominal value of one euro (or n euros)..

In this case, the public limited company would need to perform a corporate action to adjust for irregular nominal values of a stock.

Change over to irregular euro nominal values.

Procedure

No cleanup activities are necessary for variants 1 and 3, since one unit is still one unit. You only need to adjust the class data.

For variant 2, you need to carry out a stock split. The following example illustrates the necessary consequences.

Translation ratio: 1.8525

A stock with a nominal value of DEM 5.00 = EUR 2.70

Capital increase from retained earnings: EUR 0.30

Result ® Three stocks at EUR 1.00

You do not need to enter a capital increase from retained earnings in R/3 position management, since the number of units issued does not change.

As an alternative to a capital increase from retained earnings, issuers may carry out a capital reduction. Example:

Translation ratio: 1.8525

A stock with a nominal value of DEM 5.00 = EUR 2.70

Capital increase from retained earnings: EUR 0,70

Result ® Two stocks at EUR 1.00

In R/3 position management, you only need to carry out a stock split, as in the previous example.

2. Shares in funds
Procedure

Since shares in funds are quotes in units, the same applies as for stocks. You do not need to carry out a stock split.