- Go to File Maintenance > Gift Security Inventory Maintenance
- Corporate Actions
- There are possibly two options you can choose:
- Security Dividends
- Dividend - Interest or Capital Gain
- If only one is available, you have no choice and will use that one. If both are available, you need to know the ramifications of the choice.
- Creates a new position record
- Creates a position transaction record
- Creates a stepped up basis so subsequent sale calculates the proceeds correctly.
Dividend - Interest or Capital Gain Dist.:
- Uses an existing Position and adds shares
- Creates a position transaction record associated with original position
- Basis is currently not stepped up and the journals resulting from the sale need adjustment before posting. This is a known bug that will be fixed. ( Exists in version 14.2 and earlier for certain)
From an accounting perspective, as long as you adjust the proceeds for the stepped up basis, the ultimate results are the same.