This utility allows transferring multiple Stock Certificates to one Stock Certificate. Multiple equity values may be transferred to a single Class at Transfer Equity / Equity Transfer. The receiving Patrons must have a Certificate established to receive the transferred equity. This process does not automatically create a Stock Certificate.
- How Many Patrons – Select the Patrons to be included in the transfer.
- From Stock Classes – Select the Stock Classes to transfer from.
- No Partial Transfers – Select if no amount less than the per share value set on the To certificate may be transferred.
- Ignore Cap – Optionally mark if the Cap set on the stock should be ignored, allowing the certificate value to exceed the cap value.
- Class – Select the Stock Class receiving the equity.
Equity Transfer Posting Notes
Upon saving the transaction, the following posting occurs:
- On the From Stock Certificates, the # of Shares is reduced to zero and the Total $ Value is updated to zero. The Inactive option is selected and the Date Closed is populated.
- On the To Stock Certificate, the Total $ Value is updated to the sum of the amount being transferred for that Patron. The Total $ Value is then divided by the $ Value Per Share to calculate the new # of Shares.
- Stock History records are generated. A record for the Stock Certificates transferring equity out and a record for the Stock Certificate transferring value in.
- A General Journal Entry is posted to the current month.
| General Ledger Entry | Debit | Credit |
|---|---|---|
| Transfers equity out | Account on Stock Class transferring from (Setup / Stock Class) | |
| Transfers equity in | Account on Stock Class transferring to (Setup / Stock Class) |
How to Equity Transfer
- Select the Stock Classes from which the equity is being transferred.
- Select the Patron(s) whose stock is being transferred. This defaults to all Patrons, but specific Patrons may be selected if necessary.
- Select No Partial Transfers if the receiving stock cannot receive partial share values.
- Select Ignore Cap if the receiving stock may exceed the cap entered on the Certificate.
- Select the receiving Stock Class.
- Choose Post.
Stock Transfer Posting Notes
The following posting occurs:
- For each selected Patron, the first Stock Certificate in the selected To class will potentially receive value from all Stock Certificates in the From class (belonging to the same Patron). Only full shares are contributed to the Stock Certificates in the To class.
- The value contributed to the To class is relieved from the Certificates in the From class (leaving only values less than the $ Value Per Share on the To Certificate).
- A Stock History entry is generated for each Stock Certificate that value is transferred From or To.
- A General Journal Entry is posted to the current month.
| General Ledger Entry | Debit | Credit |
|---|---|---|
| Transfers equity out | Account on From Stock Class (Setup / Stock Classes) | |
| Transfers equity in | Account on To Stock Class (Setup / Stock Classes) |
How to Transfer Stock
- Select the Patrons whose stock is being transferred. This defaults to all Patrons, but specific Patrons may be selected if necessary.
- Select the Stock Class being transferred from the drop-down.
- Select the Stock Class receiving the transfer from the drop-down.
- Choose Post.
