Issue

How do I set up an investment in gold or other precious metals bullion in Class? 

Background

There are situations when entities invest in physical quantities of gold, silver, etc. This would be in the form of ingots or bars. If an entity has gold or other precious metals bullion in this form, then a new security issue should be created.  

Resolution

There are 2 options that you can use to set up an investment in gold or other precious metals in Class: 

Option 1: 

We recommend you set up the Security Issue at the Business level before creating the Investment Account for the entities, so you can use it for all entities across the whole business

Navigate to Business level > Investment > New Security

1. Enter the Common code and Description
2. Classify the Market Type and Security Issue Type. The screenshot below shows the default setting in Class
3. Click "Save"
   
   
   
   

   Navigate to Fund level > Investment > Investment Account

4. Enter the "Security Issue" that was created at the Business level
5. Click on the Security 
6. Click on Activate

Option 2:

You can also create the Security Issue and Investment Account at the entity level if you only need to set up gold or other precious metals for the specific entity.

Navigate to Fund level > Investments > Investment Accounts

1. Enter the "Security Issue"
2. Click on "Create Security Issue"
   
   
3. Enter "Description"
4. You will initially classify the Market Type as "Unlisted Market" and Security Issue Type as "Unlisted Company"
5. Click on Save
   
   
6. Tick the checkbox to "Enable Reporting Categories" if you want to edit the settings. The screenshot below shows the default setting in Class
   
   
7. Click on Activate

When creating these security issues, you will need to ensure you apply unique codes, for example, if GOLD is already used, please create a different code.

To update the market value, refer to User Guide, Revaluation for Unlisted Securities, or detailed steps 

Further information

How to process acquisition and disposal for Gold or Other Precious Metals

How to record the related income/expense for Gold and other Precious Metals