Corporate Action – Stock Swap

Basic data

Security Class: 71 No. of shares held: 1,000 Acquisition Value: INR 75,000.00

Stock purchased on 01.02.2012, Position Value date, Calculation date, Payment date: 01.02.2012

Click

Now we will see the position list (TPM12)

Security Class: 71 Co. Code: 9101 Key Date 29.02.2012 Check Security, No zero positions, Include planned data check boxes and click execute

Double Click on 1st

line

Due to a takeover or merger, the existing stock is replaced by another stock in the ratio of 4:1. That is for every 4 existing shares 1 another share is issued. Hence existing stock vanishes and 250 shares in another stock will be issued with the book value of the existing stock of INR 75,000 also being transferred to the other stock as its book value.

Create the Security Class for the other stock

Other Stock belongs to XYZ Ltd., Class: 72 ( 71 is HDFC Stock)

Click Basic data tab

Save

Create Corporate Action for Stock Swap (FWK0)

Click

Click

Post the Corporate Action (FWKB)

Click on

Click on

IMP. On 15.02.2012 both securities 71 and 72 have status “Scheduled” .So TPM 18 has to be run on 15.02.2012. If you take any other date for fixing the transaction, it will show error.

Do the production run

Click on

Click on

Back

Display the position list after posting the stock swap. The Corporate Action does not transfer the book values but only the quantity information. The transfer of book values are scheduled which needs to be fixed using Transaction code TPM18. Execute TPM 12

Update

Execute

Back to main menu and cheek Click Execute

Double click on 2nd

line.

Double click on 1st

line of the screen “List of position values for key date 29.02.2012”.

Back to the main menu. Uncheck Execute

Now we have examined the position from various angles.

Fix the Derived business transaction for transfer of book value. (TPM18)

Fix the transaction on 15.02.2012 (TRL date) (V.V.Important) Class: 71 Execute Test Run, Then production run.

Do production run

Click on

Details for Valuation Area 001

Click on FI Reference number

You can view the details of a transaction in TPM 20 – Posting Journal

Display the Position List after Stock Swap and Fixing of Derived Business Transaction

TPM 12 Class : 71 & 72 Uncheck : No zero position and Include planned data Date : 29.02.2012

Unit and value both transferred to class 72. Double click 1st

line.

Back Double Click on 2nd

line.

End Prepared by rajkm10