Transfer Equity - Patron to Patron

Equity value may be transferred from one Patron to another at Transfer Equity / Transfer Equity. This function only transfers one Certificate at a time. The receiving Patron must have a Certificate established where the value will be transferred. This process does not create a Stock Certificate.

Process

1. Within Accounting, navigate to Patronage / Transfer Equity / Transfer Equity.
2. Enter the Date of the transfer. The system date defaults but may be changed if necessary.
3. In the From section, double-click in the Certificate # field and select the Certificate from which equity is being transferred in the Select Stock Certificate window.
   Note: If the Certificate # is known, it can be manually entered. If a Stock Certificate number is entered that does not exist, a message appears that states The from stock certificate number does not exist. Please enter a valid stock certificate number. 
4. Once a valid Certificate is selected or entered, the following read-only information is available:
   • The first and last name of the Patron associated with the stock.
   • The current dollar value of the stock is displayed in the Current Value field.
   • The $ Per Value field displays the dollar value of each share of the selected stock. 
5. Based on the $ Per Share value, enter the Amount of Shares to be transferred. 
   Example: To transfer $75 from the selected Certificate and the $ Per Share value is 1, enter 75 in the Amount of Shares field (75 shares * $1 value = $75 equity transfer). However, if the $ Per Value is 25, enter 3 in the Amount of Shares field as it takes 3 shares to reach the $75 value (3 shares * $25 value = $75 equity transfer). 
6. In the To section, manually enter or double-click in the Certificate # field and select the Certificate to which equity is being transferred in the Select Stock Certificate window. 
   Note: When manually keying the Certificate #, both Active and Inactive Stock Certificates can be entered in the field. However, when looking up the Certificate by double-clicking in the field, only Active Certificates are included in the Select Stock Certificate window. If the To Certificate # is not found in the look-up but is known to exist, check the Certificate is marked Active at File Folder / Stock Certificates / Edit a Stock Certificate.  
7. Add Comments as needed and choose Save.
    

Posting Notes

Upon saving the transaction, the following postings occur:

• On the From Stock Certificate, the # of Shares is reduced by the Amount of Shares entered on the Transfer Equity window. The Total $ Value is then updated by multiplying the new # of Shares by the $ Value Per Share. 
  Note: If the total value is being transferred from the Stock Certificate, the Certificate is marked as Inactive and the Date Closed is populated.
• On the To Stock Certificate, the Total $ Value is replaced by the After Value from the Transfer Equity window. The new Total $ Value is then divided by the $ Value Per Share to calculate the new # of Shares.
• Two Stock History entries are generated - one for the Stock Certificate transferring equity out and one of the Stock Certificate transferring value in.
• A General Journal Entry is posted to the current month.