Entering content frameProcedure documentation Capitalize Locate the document in its SAP Library structure

Use

You can reinvest dividends from stocks or shareholdings (flow category TD) and revenues from distributions from investment funds (flow category TDA) by capitalizing the revenues, thereby acquiring new units of the respective security. Revenue is, therefore, either only partially distributed in cash, or not at all and is used instead to purchase additional units of the security.

Procedure

  1. Choose Edit ® Capitalize.

    2. The following dialog screen allows you to enter the exact data relating to the capitalized revenue amount:

    The Amount available is the total amount of the dividend or distributed profit available for reinvestment.

  2. In the Amount to be capitalized field, you enter the amount you want to reinvest.

    3. You can utilize the full amount available or specify a partial amount. If you choose to capitalize only a partial amount, the rest of the dividend or profit distributed is posted normally, and is usually credited to a bank clearing account (according to the account determination).

  3. In the Units to be received field, enter the number of units of the security you will acquire through reinvestment. You post these additional units to your securities account as an acquisition with the acquisition/book value calculated from the amount to be capitalized and the number of units.
  4. After you have entered all the data for capitalization, Copy the data.

    5. The system generates two new flows:

    1. One for the revenue of the capitalized dividend/distributed profits (flow category TDAK for revenue capitalized dividend, or TDAA for revenue capitalized distribution).
    2. Another for the acquisition of the capitalized dividends/distributed profits (flow category AAK for inflow capitalized dividends, or AAA for inflow capitalized distributions).
  5. You can change the data relating to capitalization later, by selecting the Capitalize function again.

 

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