Securities Case Study

Case
A fund-raised company that has liquidity of 1,000,000 USD in its bank account seeks advice from an investment advisor to evaluate its money. The consultant makes an investment basket proposal to the company official. According to this recommendation, the company;

Will buy Google and Apple shares with 200,000 USD,

With 200,000 USD, they will receive a 4% yield Eurobond with a coupon every 6 months,

They will buy government bonds with a maturity of 5 years and a yield of 5% with 200,000 USD.

It will make an Overnight Repo with 200,000 USD.

It will deposit 100,000 USD to a 1-year maturity 6% yield deposit.

It will invest in a Sukuk fund with a 3-month rental income of 100,000 USD.

As can be seen above, the example of the case will be understandable for both the developer and the users.

Transactions

Preliminary Transactions

1. Define the types of securities.
2. Check that the bank accounts where you will buy and sell securities are opened.
3. Define the document numbers of Securities Purchase, Sale, Rediscount, Return to Account transactions.
4. If an intermediary institution is used for buying and selling securities, check the accounting codes of the account's account and current account.
5. Create accounting chart of accounts definitions of securities.
6. Create budget items of securities and link accounting account codes.
7. Create accounting chart of accounts definitions of securities returns.
8. Create budget items of securities returns and link ledger account codes.
9. Create accounting chart of accounts definitions of securities appreciation and depreciation.
10. Create budget items for securities appreciation and depreciation and link accounting account codes.
11. If the brokerage house commission is paid for the purchase and sale of securities, create the accounting chart of accounts for the commission.
12. If brokerage firm commission is paid for buying and selling securities, create the budget item and connect the accounting account codes.
13. Create the securities purchase transaction category and select the transaction officer employees.
14. Create the securities sale transaction category and select the transaction officer employees.
15. Create the securities return transaction category and select the transaction officer employees.

Main Transactions

1. Buy a sukuk type security with a fixed rental income quarterly.
   Route: ERP > Finance-Accounting > Securities > Purchasing Securities
2. Buy a government bond with a semiannual coupon yield.
3. Buy stocks using a brokerage firm.
4. Collect the sukuk yield which is a fixed rental income quarterly.
5. Buy overnight repo-liquid funds using brokerage as securities.
6. Collect the yield of a sukuk type security with a fixed rental income quarterly.
7. Collect a yield on government bonds with semiannual coupon yields.
8. Update the values of your stocks in stock.
   Route: ERP > Finance-Accounting > Securities
9. Rediscount the returns of fixed income securities in stock before maturity and create income accrual.
   Route: ERP > Finance-Accounting > Securities > Securities Returns
10. Trade the appreciation and depreciation of variable value securities in stock.
    Route: ERP > Finance-Accounting > Securities > Securities Appreciation and Depreciation
11. Buy some amount of government bonds in stock in the secondary market before maturity.
    Route: ERP > Finance-Accounting > Securities > Securities Sales

Post-Transactions

1. Check the accounting records of securities buying and selling transactions.
2. Check the budget records of securities buying and selling transactions.
3. Check bank records of securities buying and selling transactions.
4. Check accounting entries for securities yield collections.
5. Check budget records on securities yield collections.
6. Check bank records on securities yield collections.
7. If an intermediary institution is used in securities transactions, check the expense records of the commission amount.
8. Check the accounting records of securities value increase and decrease transactions.
9. Check the budget records of securities appreciation and depreciation transactions.
10. Check the dates and numbers of the securities returns on the cash flow statement.
11. Check that stocks of securities are in active accounts on the cash flow statement.