Manage Corporate Actions
Application component: Fiori UI for Financial Accounting
App type: SAP GUI
Description:  Corporate actions are part of position management in the securities area. They can also influence transaction management deals such as Forward Securities Transactions (FST) and Total Return Swaps (TRS). You can use this function to display changes made by the issuer to the capital structure for classes in your position. On the SAP Easy Access screen, choose Accounting    Financial Supply Chain Management    Treasury and Risk Management    Transaction Manager    Securities    Accounting    Corporate Actions (transaction FWK0). 
Key features: Standard functions are available for the following capital changes: Stock splitWhen a stock is very expensive the issuer can decide to split the stock e.g. in the ratio 4:1. By this the number of stocks in each securities account is multiplied by 4, i.e. for each stock a stock holder gets 3 stocks for free (the value of a position is not changed as the market price usually is split by the inverse ratio.) Stock SwapCapital reductionIf a company is in a bad financial situation it can decide to reduce its capital and to reduce its number of issued stocks. In this case a stock position of 100 stocks is reduced to a new number of e.g. 10 stocks, i.e. the capital reduction is reflected by position decrease flow of 90 stocks. Capital increases from retained earningsIf a company has a lot of free capital it can decide to make a capital increase, i.e. to issue new free stocks to the stock holders. As with a stock split each position will have a quantity increase in a given ratio. Transfer new stockWithin the process of an ordinary capital increase new stocks are given to the stock holders. The new stocks have an own security ID which differentiates them from the existing “old” stocks. This is needed because in many cases the dividend for the new stocks is lower than the dividend for the old stocks. At a given date (decided by the issuer) the new stocks are transferred into old stocks, i.e. we have a quantity decrease of the new stocks and a quantity increase in a specified ratio in the old stocks (like in the case of a stock swap). Posting Subscription RightsIssue Currency Changeover You can use the manually-generated corporate actions function for capital changes that are not supported by the standard functions offered in the securities management area. Status  Description  Remarks   0  Planned  The corparte action has status 0 once you have created and saved it in the system.You can change, delete or activate the corporate action.You cannot post the corporate action.   1  Activated (No flows exist)  This status enables you to transfer a planned corporate action (status 0) or one you have just created by choosing Corporate action  Activate.You can post the corporate action.Deactivate resets the corporate action to status 0.   2  Activated (Posted flows exist)  At least one company code contains posted flows.   3  Activated (Posted and reversed flows exist)  At least one company code contains posted flows.At least one company code contains reversed flows.   4  Activated (Reversed flows exist)  You can transfer the corporate action to status 5 using the deactivate function.   5  Reversed  The corporate action is deactivated and all flows are reversed.You can no longer post the corporate action.    
Business roles: Treasury Specialist - Back Office
Treasury Specialist - Back Office : 
Processes financial transactions, sends confirmation to counterparties, imports market data and runs the valuation.