Configuration of Subscription rights(03A) To Stock(01A)

[Former Member]

I want to know the configuration and process about subscription rights(03a)  transfore to stock(01a).And have the Accounting entry best. Thank you.

[former_member198450 · Accepted solution]

Dear Chan,

Please use standard one 03A it will fulfill your requirement.

create master data for stock say for example :

Company has announced the Right issue which gives you right to purchase share of the company at discounted price. Right issue is announced in the ration 20:1 i.e. for every 20 shares you hold, you will have 1 right issue (you can buy 1 share at discounted price)

Suppose you have 1000 shares of the company  45 EUR share, means you are eligible for 50 right issue. Company is selling the share at discounted price of EUR 30 if you exercise the right

1) Make sure when creating the security master the Stock Form is Old Stock(FWZZ)

2) Create new security data with new stocks(FWZZ)

3) create security date for sub right with product type: (03AFWZZ)

in master date  for sub right security class in basic tab enter sub period details.

4) Create corporate action for sub right as above example: FWKO

5)Execute corporate action: FWKB

6) Exercise right"FWER

7) Transfer new stock to old stock through corporate action

Hope this help.

Regards,

Jain

Regards,

Jain

[Former Member · Accepted solution]

Very useful. Good!