Support Query

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I've used Corporate Actions to process a share consolidation and it's rounded the units to the nearest whole number. How do I account for the consolidation using partial units?

Overview

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Example - Adjusting an investment's units upwards

If Simple Fund 360 has understated an investment's units due to rounding, an upwards adjustment is required.

Consider a fund with the following holding before and after processing a share consolidation on a one-for-ten basis using the Corporate Actions screen:

As the units have been understated by 0.2 units, an upwards adjustment will be made to bring the units to 124.2.

This is achieved by posting the following journal in Simple Fund 360:

Example - Adjusting an investment's units downwards

If instead the units had been overstated, a downwards adjustment would be required

Consider the same corporate action as above but with the following holding:

The units have been overstated by 0.2 units which will require a downwards adjustment.

This will be achieved by disposing of 0.2 of the units at cost to prevent any CGT occuring.

The following journal shows this:

Ensure that no Capital Gains occur when posting this transaction:

An upwards cost-base adjustment entry will be required to bring the cost-base up: