The update types used in the example correspond to the Customizing settings delivered with the system.
Example: Exercise of a Put Warrant with Delivery
Here we will go through the exercise of a sample put warrant with delivery.
The update types used in the example correspond to the Customizing settings delivered with the system.
Process Flow
Initial situation:
The balance sheet account 1 (put warrant) contains warrants to the value of 500 EUR for the sale of 500 units of the underlying. The balance sheet account 2 (underlying) contains a position of 1,000 units to the value of 10,000 EUR.
Exercising the option:
When the warrant is exercised, the system generates the following flows:
Also, the update type DBT_D001 Clear purchase value (derived business transaction) is generated:
Posting record
Balance sheet clearing to position 1 500 EUR
- Update type RHT0002 Rights: Position outflow units/nominal that reflects the quantity change in balance sheet account 2.
- Update type RHT0005 Rights: Incoming payments that contains the information on the incoming payment amount.
- Update type RHT0004 Rights: Position outflow amount that posts the value decrease in the underlying:
Posting record
Bank clearing to position 2 6,000 EUR
A translation is generated also that modifies the position component acquisition value of position 2:
Update type DBT_E001 Translation purchase value 5,000 EUR
DBT_D101 Post to outgoing position
Posting record
Position 2 to balance sheet clearing 500 EUR
(C)Update type DBT_B001 Securities gain
Posting record
Position 2 to P&L 500 EUR
