Processing Security Dividends

Processing Security Dividends

Security dividends are payments that companies give to their shareholders out of the company's current or retained earnings. Dividends are usually paid as cash, but they can also be paid as additional shares of stock.

IMPORTANT: Make sure that you have a Dividend Asset Account and Dividend Revenue Account configured in the Accounts section of the Position Tab for the open Position records before running this process.

Refer to the Securities Tab for more information on the available accounts.

1. In the Gift Securities Inventory Data Grid, select the Security that you want to record dividends for, and then click the Corporate Actions tab.

2. On the Corporate Actions tab, select Security Dividends and then click the Run Process button. The Security Dividends window opens with the selected Security listed in the Security field.

Security Dividends Window

NOTE: If you want to record dividends for a different Security, click the Lookup button next to the Security field and select the desired Security from the Lookup list.

3. Select either the Cash or Stock radio button to indicate whether the dividends are being paid as cash or stock.

4. Enter the Amount Per Share of the dividend.

5. Enter the Paid to Shareholders of Record date (the date when ownership for dividend processing is recorded).

6. Enter the Apply Date for the transaction.

7. Click OK.

8. Verify the Send To destination, and then click the Run Report button. The Security Dividends report opens. This report provides information about the Security, the Fund ID, the amount of the dividend (in dollars or shares), and the debit and credit accounts for the transaction.

Example: Security Dividends Report

9. Verify the information on the report, and then click Post Dividends on the FIMS Viewer menu bar. The Post Security Dividends window opens.

Post Security Dividends Window

 10. Verify the debit and credit information and make a note of the Reference number.

NOTE: The default Apply Date is today’s date. You should change this date to match the Dividend Revenue Recognition date.

11. (Optional) If the dividend is going to affect FACTS in a period that is different than the Apply Date, enter a FACTS Confirm Date.

12. Click OK. A confirmation window opens asking if you are sure you want to create G/L Journal entries.

13. Click Yes. A message window opens to tell you how many journal entries were created.