BEFORE YOU START MAKE SURE YOU HAVE SETUP YOUR INVESTMENT REGISTER LINK IN CHART.
DRP (Dividend Reinvestment Plan) enables eligible shareholders to reinvest all or part of any dividend paid on their shares into additional shares, rather than receiving dividends in cash.
For example: A person owns 310 BHP shares. BHP paid a Final Dividend of 0.88545327 per share on the 25/09/2018 = $274.49. The reinvestment price was $34.0508. Number of shares allocated for dividend reinvestment is 8 shares.
Note: There is often a small difference between the dividend paid ($274.49) amount and the value of the shares received through the divdend reinvestment plan (8 x $34.05 = $272.40). In this case the difference is $2.09. This small amount left over, the company (e.g. BHP Group Limited) will just keep as a credit for you for next time you receive a DRP allocation.
To enter the DRP into Cashbook and the Investment Register:
In the Add Transaction window enter the transaction details
In the Add transaction for investment "BHP Group Limited" window: Enter the relevant information:
Enter the second dissection of the Cash Journal: