Investment Ledger - Disposal Event
The event is used to totally or partially dispose of an asset.
What to enter
- Reference
- A reference can be entered if required
- date
- A date for the transaction is mandatory
- Quantity
- To allow for particular tranches (or part of a tranche) to be disposed of, select from the list at the bottom of the screen. Tick the Dispose box and enter the amount in the adjacent box. The quantity field will then be populated.
- Unit Price
- Disposal price per unit (consistent with the UoM of the original investment)
- Fees and Fee Account
- Enter any fees paid associated with the transaction and select the expense account to record them to
- Bank Account
- Choose the bank account to record the receipt of the disposed value.
Accounting Entry Structure
The transaction will be based upon a receipt transaction as the investment is being sold. So Debit (increase) bank account and fees expense account, Credit (reduce) the investment holding account.
If any holding remains after the disposal event a revaluation event is automatically triggered at the current unit price.