A dividend reinvestment plan (DRP) is an equity investment option offered directly from the underlying company. The investor does not receive dividends directly as cash; instead, the investor's dividends are directly reinvested in the underlying equity. This article will show you how to process DRP's in Class.
We recommend you firstly automatically load all the fund's income entitlements using Generate Income and then process any relevant Dividend Reinvestment Plan they participate in using the process below. If the investment is unlisted you will need to manually create the income events by referring to this article.
Navigate to Fund Level > Transactions > Match Transactions
- Click Edit and then tick the 'Includes Reinvest' box and 'Use this Announcement' and Submit
- Review the Previous Residual Balance (This will automatically populate with any residual amount for the selected security carried forward prior to the Record Date)
Review the Total Amount Available for Reinvestment (It will automatically populate by the sum of Net Payment, Previous Residual Balance and Residual Adjustment)
- Review the Allotted Quantity
- Review the Allotted Share Cost (The total amount of dividend being reinvested)
- Review the Carried Forward Residual Balance (It will automatically populate by subtracting Allotted Share Cost from Total Available for Reinvestment)
- Click Submit
Learn how to process DRP residual amounts