Exact Synergy Enterprise

Linking Divisions to Shareholder

Introduction

When a division purchases shares in another division, the former will become a shareholder. In this scenario, the shareholder can link the division which it had purchased shares as its child division. Before you can link a division to a shareholder, you must first create a share capital issuance record for the division. Only then, there will be available shares to be purchased by the division which will become the shareholder.

Menu path

Go to Financial/Setup/Organization/Divisions or HRM/Setup/Organization/Divisions, display the overview of divisions, and click a division to open the division card. Under the Monitor section, click Divisions. Next, click New.

Roles & rights

To create and maintain the shareholder-child division records, function right 62 – Maintain subsidiaries and shareholders is required. Users with the General manager and Controller roles have this function right.

For more details on what you can do with function rights or levels, go to System/Setup/Security/Function rights, select the required module, and then click on the relevant ID. To find out the functions you can perform with a particular role, go to System/Setup/Security/Roles, type in the description, click Refresh, and then click the required link under the Role column.

Button

Save

Click this to link the division to the shareholder. Once you have clicked this, you will see the Share purchases & disposals section. You can enter the details of the shares purchase or disposal transaction by the shareholder in this section. For more information, see Registering Shares Purchased or Disposed by Shareholder.

Close

Click this to exit.

Description

Shareholder

This displays the shareholder which you will link the division to. You can click the shareholder link to view the division card of this shareholder.

General section

Division

Select a division to be linked to the shareholder. Available options depend on the divisions you have created in the system.

Note: The division displayed at Shareholder will not be available for selection at Division as the shareholder and the child division cannot be the same division.

Type of shares

Select Ordinary shares if the transaction involves ordinary shares purchased or disposed by the shareholder. Alternatively, select Preference shares if the transaction involves preference shares purchased or disposed by the shareholder.

Note: Only ordinary shares will be taken into account when the system calculates the shareholder’s percentage of ownership in the division, while preference shares transactions will only be registered for information purpose.