Stock Purchase
Stock Purchase is the only form that records share movements. Every dividend calculation and equity report reads its output, so as long as no purchase is approved, all of them will answer empty.
Used By
operational admin according to menu access rights
Data Type
transaction
Search Key
Code
When to Use This Form
- When capital is paid in by a shareholder for a new share issue.
- When share ownership moves from one shareholder to another.
- When an existing share movement needs recording so reports and dividends account for it.
Before You Start
- Make sure both the buyer and the seller are registered as application users.
- Prepare the offer the purchase refers to, if it refers to one.
- For a new share issue, make sure a division and a payment type exist and the Share Capital Account is set in Equity Settings. Without all three, an approved purchase is rejected with the reason shown.
Workflow
- Open Equity / Overview & Transactions / Stock Purchase.
- Select the buyer in Stockholder and the source in Bought From.
- Select the offer the purchase is based on, if any.
- Fill in the number of shares and the value per share.
- Select the Stock Status: Stock Issue when capital enters the company, or Transfer of Ownership when shares move between shareholders.
- Fill in the division. For a new share issue, also select the payment type receiving the funds.
- Fill in the paid date if it has been paid, then turn on Approved and save.
Fields That Need Attention
| Field | Explanation for Users | Status |
|---|---|---|
Stockholder
stockholder |
The party receiving the shares from this transaction. | Required |
Bought From
buyfrom |
Where the shares come from. On a transfer of ownership this party is recorded as releasing shares. | Required |
Stock Offer
equityofferid |
The offer this purchase is based on. The quota is checked on approval: a purchase exceeding the offered amount is rejected. | Optional |
Number of Shares
stockqty |
How many shares are bought. | Required |
Stock Value
stockvalue |
Price per share. The capital journal amount is the number of shares times this figure. | Required |
Stock Bid
stockbid |
The price the buyer proposed, when the bidding process is recorded. | Optional |
Transaction Date
transdate |
The date the purchase is recorded. | Optional |
Paid Date
paiddate |
The date payment was received. When filled, this date is used for the share movement and the journal instead of the transaction date. | Optional |
Stock Status
stockstatus |
Stock Issue increases the company capital. Transfer of Ownership only moves shares between shareholders and touches neither company cash nor capital. | Optional |
Division
division |
The division carrying the journal. Required for an approved new share issue. | Optional |
Payment Type
paymenttype |
The cash or bank account receiving the funds. Shown only for Stock Issue, because a transfer of ownership does not pass through company cash. | Optional |
Approved
approved |
Share movements and the journal are only created after approval. Withdrawing approval reverses them. | Optional |
Notes
notes |
Extra remarks carried into the share movement and the journal memo. | Optional |
What Happens After Saving
- A share movement is created and is immediately used by Stockholders, Stock Histories, and Dividend Calculation.
- On a transfer of ownership two movements are created at once: the buyer receives and the seller releases.
- An approved new share issue posts a debit to cash or bank and a credit to the Share Capital Account. A transfer of ownership posts nothing, because the money does not pass through company cash.
- Shares Sold and Shares Remaining on the related offer are recalculated.
- Withdrawing approval or deleting the purchase reverses every movement and journal line, then resets the offer quota.
Common Issues
- The purchase is rejected for exceeding the quota: the total approved shares must not exceed the amount offered.
- An approved new share issue is rejected: check Division, Payment Type, and the Share Capital Account in Equity Settings. All three are validated before the row is saved.
- No journal was created: check the Stock Status. A transfer of ownership deliberately posts nothing.
- Equity reports are still empty: share movements are only created from approved purchases.
User Checklist
Menu Location
- Equity / Overview & Transactions / Stock Purchase
/form/equitypurchase