Dividend / Share Capital
Within the Financial Plan, the Financial Controller can enter Dividend or Share Capital transactions from a parent or subsidiary perspective. There are four transaction types that a Financial Controller can choose from (see the following screenshot):
1. A Dividend payment from this entity to a parent entity
2. A Share Capital injection from a parent entity to this entity
3. A Dividend receipt from a subsidiary to this entity
4. An investment from this entity into a subsidiary
To do this, go to Input – Share Capital in the navigation panel.
A new transaction is created by clicking the Add transaction button. A slide-in appears in which the desired transaction type is selected, and the following fields are filled in:
• Transaction name
• Amount
• Period (month) in which the transaction takes place
For transaction types:
• A. Dividend payment to parent
• D. Investment in subsidiary
you can opt for an internal or external Counterpart Entity.
If you select Internal, the transaction is automatically processed at the Counterpart Entity as well. To do this, select the correct Entity from the drop-down list.
If you select External, the transaction will only be processed in the Entity itself. Free text can be added to this.
For transaction type:
• A. Dividend payment to mother
you can, in addition to a one-time payment, also choose to apply a Dividend Schedule by selecting the check box (see the following screenshot).
In the Dividend Schedule it can be determined per month of the calendar year what percentage of the distributable profit must be paid as Dividend and over which period. The Dividend payment is then automatically calculated by the system and plotted in the Financial Plan.
After the Dividend Payment has been created, it will appear in a new line on the screen. Further details of the Dividend payment to parent are shown at the bottom of the screen by clicking on the Dividend payment line in the Name column. In that screen it is also possible to make manual adjustments in the Dividend adjustment line (see the following screenshot).
Also after creating other transaction types in Dividend or Share Capital, these appear on the screen in a new line.
An infinite number of transactions can be added to a Financial Plan.
Transactions, initiated from the selected Entity, can be edited by clicking in the Name column in the line which reopens the slide-in.
Transactions, initiated from the selected Entity, can be deleted by selecting the check box at the beginning of the line on the relevant line and then click the Delete button.
WARNING:
This means that internal transactions can only be edited/deleted from within the paying entity.
Transactions, where the selected Entity is the counterparty, are shown in a gray line and cannot be changed. The user is notified of this when hovering over the line.