The following is an example of a manual activity journal for a switch. This can be used for a backdated switch, or for the correction of an existing switch.
In this example, member (number 1234) switches 100% out of portfolio MCAR2, into portfolio OMGUARAN.
The following data is retrieved from accounting using INVSTMEMUNIT account:
|
|
Amount |
Units |
Comments |
|
Selling price for portfolio MCAR2 |
R172.70 |
|
|
|
Accounting balance from INVSTMEMUNIT account |
R1365.24 |
7.78936 |
|
|
Selling amount for MEMSWITCHSELL |
R1345.24 |
|
Derived from number of units (7.78936) x unit price (R172.70) |
|
MEMMWRTDWN |
R20.00 |
0 |
Accounting balance (R1365.24) - sell amount calculated above (R1345.24) |
|
MEMSWITCHBUY |
R1345.24 |
0 |
The new portfolio amount |
The journal entries are as follows:
|
Process |
Accounting Activity |
Membership Number |
Income Type |
Portfolio |
Amount |
Units |
Transaction Date |
Effective Date |
Due Date |
|
SWITCHING |
MEMSWTCHSELL |
1234 |
RCS |
MCAR2 |
1345.24 |
7.78936 |
31/01/2004 |
31/01/2004 |
31/01/2004 |
|
SWITCHING |
MEMSWITCHBUY |
1234 |
RCS |
OMGUARAN |
1345.24 |
|
*31/01/2004 |
*31/01/2004 |
31/01/2004 |
|
SWITCHING |
MEMM/VWRTEUP or MEMM/VWRTDWN |
1234 |
RCS |
MCAR2 |
**20.00 |
|
31/01/2004 |
31/01/2004 |
31/01/2004 |
|
SWITCHING |
FNDSWTCHSELL |
|
|
MCAR2 |
1345.24 |
|
31/01/2004 |
31/01/2004 |
31/01/2004 |
|
SWITCHING |
FUNDSWTCHBUY |
|
|
OMGUARAN |
1345.24 |
|
31/01/2004 |
31/01/2004 |
31/01/2004 |
Note:
Check the other switches for the dates used in the transactions. These dates must be applied for the manual switch.
* Ensure that the date used is the same as the transaction date for the other switches in the INVESTMEMB account.
** MEMM/VWRTEUP or MEMM/VWRTDWN transaction amount is the difference in the market value calculated on the member's record and the book value of the member record in the portfolio.
Before UNITISATION is run, the MEMSWITCHBUY amount will be recorded in the INVESTMEMB account.
When UNITISATION is run, the MEMSWITCHBUY amount will be unitised, i.e. the number of units will be calculated based on the unit price as at 31/01/2004 for portfolio OMGUARAN. This amount and number of units will be recorded in the INVSTMEMUNIT account.