Quantity in capital accounts

#1

Dear @lubos,

I use quantity in Receipts for Capital Accounts, ie equity, to track the number of shares (3 * 100.000 = 300.000).

Now I have to move same shares from one shareholder to another one. But if I open a journal entry I can see quantities only if I choose an inventory item. Can you please enable q.ty also for capital accounts also in journal entries (and in starting balances)?

#2

Shareholding rarely changes in small companies.

Larger public companies with shares traded through a stock exchange would not maintain a share register within their accounting program. It would be a specialized data base that complies with securities exchange regulations.

#3

I’m talking about units and funds (PIFs and AIFs). It has nothing to do with stock exchange. What I need can be achieved with what I asked for. All other controls and registrations are done by the Transfer Agent of the Fund.

#4

Then use a zero totalling Receipt to record the qty transfer as the money transfer is external…
Line 1 - Capital acct > Shareholder A (who is selling) minus qty @ nominal value
Line 2 - Capital acct > Shareholder B (who is buying) positive qty @ nominal value

The nominal value would be the initial value that Shareholder A paid on acquiring the units, as the capital of the business doesn’t change due to the quantity transfer between shareholders

#5

Thanks. I’ll try this solution.

Another one is, under journal entry, to select an inventory item, set quantity and than change from inventory item to capital accounts. But it’s a more a hack than a real solution since the q.ty field is only hidden in journal entry.

That’s not always true in my case.

#6

Can you explain ?
How do the Capital Account values change, within a Business, due to a transfer of share quantities between Shareholders.

#7

Let’s see if I can explain in a simple way. In a Alternative Fund each issue of Units is done at the last approved NAV, each semester.

So a transfer of units between two Unitholders is done at the average historical value of the units hold by the seller at the selling moment.

So basically it uses the same logic of inventory in Manager but with opposed signs.