The Manual Book Wash Sale Adjustments Adjustment panel allows you to manually add a single security wash sale adjustment. A single security wash sale adjustment lets you disallow a loss from a target close lot on an accounting basis that is not eligible for wash sales processing. You can select the replacement shares yourself or can have the system determine the replacement shares. Single security wash sale adjustments create offsetting adjustments on the same position, a loss disallowance against a close, and a cost update against an open lot within the same security.
The system uses the value in the Manual Wash Sale Type field on the Manual Wash Sale Adjustments panel to identify the type of wash sale adjustment you are adding.
To add a single security wash sale adjustment, identify the close lot you are adjusting. Ensure you specify an entity/accounting basis where the Wash Sale Inhibit Ind field (tag 775) has a value of Y, indicating the basis is ineligible for automated wash sale processing. Set the Manual Wash Sale Type field (tag 157) to a value of Single Security Wash Sale. When you select Single Security Wash Sale, the system displays additional fields that allow you to identify the close issue and lot and specify how to identify the lots opened. You can set the Washsale Open Lot Flag field (tag 4916) to User Defined Open to identify the target open lot yourself in the Choose Lot to Change field or can set the field to a value of System Defined to have the system determine the target open or opens for which to disallow the loss.