Unlike the portfolio transaction ledger, fund accounting records must be entered in the order in which they are dated.  This is necessary to ensure the proper computation of NAV per share and consequently the proper computation of shares to be credited or debited to an account for a particular transaction.

 

The proper sequence of data entry is as follows:

 

1) Enter Portfolio Transactions - All portfolio transactions, e.g. buys, sells, dividends, etc. which have occurred since the most recent portfolio valuation must be entered in the fund portfolio transaction records for dates up to and including the date of the next fund accounting transaction.  Portfolio transactions dated prior to the most recent valuation must not be modified, since this will affect subsequent valuations and consequently subsequent fund accounting NAV's per share.

 

2) Create and Compute Valuation - A valuation record must be created and computed in the fund portfolio for the date of the next fund accounting transaction.  This will establish the NAV/share which will be used for the fund accounting transactions to be dated the same day.

 

3) Enter Fund Accounting Transactions - Fund accounting records to be dated the date of the most recent portfolio valuation are entered in the fund accounting transaction ledger.  These records will flow through to the portfolio transaction ledger into records containing the next days date.

 

4) Create and Compute Valuation - A valuation record, dated the date of the most recent fund accounting record must be created and computed.

 

5) Run Reports - When needed, fund accounting reports are run, with the start and end dates equaling the portfolio valuation dates.