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Former Member
Sep 21, 2013 at 06:44 AM

Corporate Action: Date Issue_Mutual Fund


Hi Experts,

I have situation related to Mutual Fund ( Product Category:20 Investment Certificate).

Scenario: User is purchasing a Mutual Fund (MF) on 01.09.2013 and stock splitting is happening on the same date ( 10/1) and he wants to sell all the position on the same date.

Limit Management is activated for them and as per SAP standard (for securities)we have advised them to give Position Value Date always as T+1 i.e. 02.09.2013 in this case for all the securities so that Limit gets updated.

Now when we are creating a Corporate Action (FWK0) but system is not posting Corp Action on 01.09.2013 as no position exists on that day.So we are creating CA on 02.09.2013 and posting it.

To while selling system is NOT allowing to sell all the position on 02.09.2013 , showing Position is LOCKED by Corp Action. SO now we have to make a sale deal on 03.09.2013. Situation gets more confusing if there is Dividend Reinvestment also on the same date.

I can understand the technical aspect (why system is behaving like that ) but its very difficult to make user understand all this.

His argument is : When all this is happening on 1 day , why he has to give 3 different dates in the system and it can become a Audit point later for him. Same is the case when we are viewing all this in the TPM13 reports, its all coming on 3 different date.

Can anyone please suggest anything we can do about this situation or atleast how to explain all this to the user.

Looking forward to your replies.

Thanks in Advance !!!