Entering content frameThis graphic is explained in the accompanying text Example: Valuation and Transfer not Affecting Net Income

In this example we look at a position for which 'Do not realize gains/losses' is defined for the treatment of gains/losses. The position is valued and then transferred. In the transfer we distinguish between two variants:

Note

The update types used in the example correspond to the Customizing settings delivered with the system.

Process Flow

  1. First the security purchase is concluded in transaction management (position 1). The system generates the following flows:

    2. Update type Purchase SE1000

    Posting record:

    Position to bank 1,000 EUR (1)

  2. At the year end a valuation is performed resulting in a security write-up of 100 EUR. This posting does not affect the P&L.

    3. Update type Write-up V2000

    Posting record

    Position to new valuation reserves 100 EUR (2)

  3. Transfer of the position to position 2 where the valuation affects the P&L (transfer from situation where the P&L is not affected to situation where the P&L is affected). The system generates the following derived business transactions:
    1. Update type Clear purchase value DBT_D001

      2. Posting record:

      Balance sheet clearing to position 1. 1,000 EUR (3a)

    2. Update type Post purchase value DBT_D002

      3. Posting record:

      Position 2 to balance sheet clearing 1,000 EUR (3b)

    3. Update type Clear security valuation DBT_D003

      4. Posting record:

      Balance sheet clearing to position 1.100 EUR (3a)

    4. Update type Post security valuation DBT_D004

      5. Posting record:

      Position 2 to balance sheet clearing 100 EUR (3d)

    5. Update type Clear security valuation (not affecting P/L) DBT_D045

      6. Posting record:

      New valuation reserves to balance sheet clearing 100 EUR (3e)

    6. Update type Clear (affecting P/L) DBT_D069

    Posting record:

    Balance sheet clearing to security write-up revenue 100. 100 EUR (3f)

  4. Transfer of the position to position 2 where the valuation does not affect the P&L either (transfer from situation where the P&L is not affected to situation where the P&L is not affected). The system generates the following derived business transactions:
    1. Update type Clear purchase value DBT_D001

      2. Posting record:

      Balance sheet clearing to position 1. 1,000 EUR (4a)

    2. Update type Post purchase value DBT_D002

      3. Posting record:

      Position 2 to balance sheet clearing 1,000 EUR (4b)

    3. Update type Clear security valuation DBT_D003

      4. Posting record:

      Balance sheet clearing to position 1 100 EUR (4c)

    4. Update type Post security valuation DBT_D004

      5. Posting record:

      Position 2 to balance sheet clearing 100 EUR (4d)

    5. Update type Clear security valuation (not affecting P/L) DBT_D045

      6. Posting record:

      New valuation reserves to balance sheet clearing 100 EUR (4e)

    6. Update type Post security valuation (not affecting P/L) DBT_D046

Posting record:

Balance sheet clearing to new valuation reserves 100 EUR (4f)

This graphic is explained in the accompanying text

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