Several transactions on the same date

If there are several transactions for the same security on the same date, the order they are processed for CGT is the order in which they appear on the window on the investment account. If the transactions are entered in the order in which they occurred then they are processed in the correct order. However if the order of the transactions is wrong for any reason, then they can be reordered. The method for reordering transactions falling on the same date depends on whether the client has a nominal ledger:

• No Nominal ledger. On a client with no nominal ledger, reordering is done by using the Reorder button on the Security Transactions window.
• With a Nominal Ledger. If a client has a nominal ledger, then the transactions can be reordered by editing the date of the transaction and then editing it back again. For instance, if two sales are recorded on the same date in the wrong order then edit the date of the later sale (which appears first) to the next day. The order is now correct, but the date of the later sale is wrong. Then, edit the date of the later sale back again. The transactions are now in the correct order.

One common situation is that a company demerges and issues new shares and a fractional cash amount. If the cash fraction is posted to the new holding’s investment account and the new holding is subsequently sold, the transactions appears as follows:

These transactions give an error, when the CGT report is run, of ‘No prior Transactions for DEM record to augment’ because the DEM is treated as occurring before the CVI, when no holding existed. The solution is to enter the DEM entry against the old holding, not against the newly created holding. If it is really necessary to enter the DEM entry on the new holding, then it must be entered dated a day later.