Recording of shares purchase

I have a simple questions: how to record financial transaction of purchasing lets say 500,000 shares? I would like to see the number of shares, price per one share and other info associated with it.

Thanks

And what are Shares refer into NAV as per you(i.e GL or Item).

You can put 500,000 in quantity and enter direct unit cost per share, the total amount will be calculated automatically.

You can see the info in the Posted Purchase Invoice.

Thanks Manish. Do you know if NAV will accept unit cost per share in lets say $ 0.001 ?

Tom you have not given enough information to answer your question. What are you going to do with the shares? Why did you buy them? Who actually owns them? How is the asset value recorded? How often will you need to do this? etc.

Depending on these answers, maybe a G: transaction, maybe items, maybe resources, maybe fixed assets, maybe you need to develop a custom granule.

Dear David and Manish,

Here we go:

“What are you going to do with the shares?”

I am trying to record portfolio investments. My company regularly buys and sells shares on a stock exchange.

“Why did you buy them?”

Speculative investments for short term profit

" Who actually owns them"

My company

*"*How is the asset value recorded?"

My previous accountant used to record shares under the account type “other current assets” , subaccount "securities".

“How often will you need to do this?”

This happens on a day-to-day basis

Just to give you an idea: we are trying to decide whether we will invest into MS Dynamics NAV and we are specifically interested in the accounting aspect of the NAV. Previous accountant used another software and was recording the stock exchange investments as “sum of invested money” without recording the actual number of shares and price per share (the software did not allow to record such details).

So, our question, how to properly record our investment portfolio in a detailed way in NAV?

Thank you.

Tom,

Navision as easily customizable system allows to implement any business need. If your company decides to buy it, you must include in your agreement with implementing Partner this requirement.

Describe how you WANT it to be carried out to details, and you do not need to force this specific process into the frames of standard Navision functionality. This will take a while sitting together with Partner’s consultants, but as a result you’ll get a system that will perform the tasks as YOU need and you can forget about clumsy workarounds.

You said that you deal with share trade daily - then it is worth investing in such modification. At a glance, the job is not very complicated, and as such should not cost too much not to pay off.

There are many ways how to solve it technically, but these are the implementing Partner’s “problems”. My quick idea is, that the result might look approximately this way - some Journal, where you enter daily purchases/sales of different shares along with Qty & Cost/Price and that’s all.
Which G/L accounts are hit, where and how the shares are “stored” - all this should be in the “Setup” part of the module, so your accountant can control and change it, if necessary - don’t allow the Partner to hardcode anything (programmers are lazy by definition, I myself was in my programmer’s past, and, as you can see from my profile info, I have worked together with Russian programmers - they are smarter than average, but unfortunately it comes together with being more lazy than average, too [;)])

Don’t forget about special reports, too - here I can’t advise you much, but it’s obvious you’ll need some “profitability” reporting, “portfolio contents” and so on…

I generally agree with Modris’ post, but want to add some comments to it.

Yes it looks easy but it’s not. The issue of rounding here is very complex. You can’t use normal 4/5 rounding, you have to manually take care, since small rounding errors can have huge consequences in Share trading.

In a job like this, the programing part and the programmers skill will be about 2% of the project. The programming for this is simple, but the design and analysis is what counts. If you have the best programmer in the world, and a mediocre analyst this will turn into a huge project of debugging and fixes.

This one I overlooked - mea culpa… Tom really asked about share price = 0.0001 in a separate post… [:$]

Well the first ever sale I tried to make for Financials was for a company that traded shares.

Thanks guys, the problem with rounding is huge. I even tried other accounting software (such as Microsoft Office Accounting 2009), but it could not use price per share in 0.001 format and also could not accept the number of shares, only amount of money.

So, I was hoping NAV can do it.

Navision C/AL can handle your rounding issue, but the base application (Sales, Fixed Assets etc) are not designed for this and will not work, even i you set the highest level of precision. Also FlowFields generally can’t be used for this. I saw this issue in Italy and Poland after they made huge currency changes Lira->EUR and Old Zlotys → New Zlotys.

But it can be done with custom programming where you handle the rounding your self.

Thanks David. Will work on this. Contacted Microsoft, will see what they offer.

We bought MS Dynamics NAV 2009 R2. I have a question: is it possible to import the data from Microsoft Office Accounting 2009 into NAV? I am sure there should be a way of doing it. As I previously said, we will be using only accounting aspect of the NAV, so moving all the accounts from the previous fiscal year would be awesome instead of creating everything from scratch. And then look into improving the system from the standpoint of decimals in the share pricing and numbering.

Thanks,

Tom

Just contact your partner, this is what they are there for.

David,

The partner we got the software from is only supporting the technical aspects, software updates, installation errors, etc. For anything else (like my question with importing our database) they want extra money. We are a small company, already paid a lot compared to our former Office Accounting 2009. So, now we have to figure it out ourselves. Thought might get some help here if possible. Otherwise, will have to be creative.

Thanks

Sorry Tom, but this is still quite a lot of work, and I doubt someone is going to do it for you for free. It’s like buying a new car, but not getting Air conditioning because it costs extra, then going to the local Auto Repair shop and asking them to install an A/C for free. There might have been a chance to do some deal with the person that sold the car to give you a discount on the A/C as an incentive to close the sale, but the car repair guy has to eat and pay bills, so there is not much incentive for him to want to do this.

Most of the people on this forum earn a living doing exactly this, and we share our knowledge to help one another out, but in the end we need to eat and pay bills. I am sure if someone asked if you would give them some shares for free, you would see it from the same perspective.