In the Writeoff Security panel, you can permanently write off a debt or equity security and remove units from the account. The writeoff reduces the position quantity and cost of the security to zero and generates a loss for the full amount of amortized cost. The term of the loss, long term or short term, is based on the writeoff's transaction date. No cash is generated and any period to date interest that is in a receivable status at the time of the writeoff is rolled back. Writeoffs are typically used to remove a distressed holding from an account.
To write off a security:
In the Accounting Center, in the left navigation pane, click Transactions > Trades > Book Trade/Rebook Trade > Book Trade.
You see the Book Trade workspace.Complete the options in the Search Details pane and click Search.
You see the search results based on the criteria you selected.Select the row with the security you want to write off.
On the Book Trade tab, in the Actions group, click Action Rules, point to Other, and then click Writeoff.
You see the Writeoff Security panel.Complete the options on the Writeoff Security panel.
Ensure that you assign the Event Type field a value of WRITEOFF.Click Submit.
Writeoff Security Panel Options
The following are the key options in the Writeoff Security panel. Note options may vary according to your selections.
Option | Tag | Description |
|---|---|---|
Entity Information | ||
Entity ID | 1163 | Specifies the unique identifier of the entity. |
Entity Name | 1164 | Specifies the name of the entity. |
Base Currency | 86 | Displays the base currency of the entity. |
Issue Information | ||
Effective Date | 35 | Specifies the effective date of the writeoff. |
Accounting Date | 36 | Specifies the date the trade is reported and has an effect on the entity's holdings and cash balances. The accounting date must be greater than the trade date. |
Monthly Accounting Date | 4733 | Displays the month end accounting date. |
Settlement Date | 37 | Displays the date the writeoff is settled. |
Event Type | 55 | Specifies the business intent of the transaction. Options include:
|
Long/Short Indicator | 15 | Indicates whether the position is long or short. Options include:
NOTE: You cannot write off a short position. However, you can write off a technically short position using exception based processing to clean up technically short positions that cannot be easily fixed using another transaction. |
Cross Reference Type | 1234 | Specifies the cross reference type associated with the security. |
Issue Name | 961 | Specifies the name of the security. |
Ticker | 13 | Specifies the symbol used to uniquely identify a security. |
Cross Reference ID | 1233 | Specifies the cross reference identifier associated with the security. |
Instrument Type | 11 | Displays the instrument type, such as cash, equity, or fixed income. |
Security Type | 82 | Displays the security type of the asset. |
Issue Currency | 85 | Displays the local currency of the security. |
Maturity Date | 38 | Displays the date the final principal payment is due on the debt instrument. |
Coupon Rate | 70 | Displays the rate at which the security accrues interest. It is expressed as an annual rate. |
Deliver Information | ||
Position Quantity/Current Face | 122 | Displays the current quantity of the position. |
Quantity/Current Face | 40 | Displays the trade quantity of the writeoff transaction. The value in this field must be greater than zero. |
Accrued Period to Date - Local | 7350 | Displays the period to date interest in the local currency for the security. Any period to date interest that is in a receivable status at the time of the writeoff is rolled back. Securities you write off are typically in default, are no longer accruing interest, and display no value in this field. If the security is still accruing interest at the time of the writeoff, this field displays the outstanding interest that has accrued since the last coupon payment. |
Accrued Period to Date - Base | 7430 | Displays the period to date interest in the base currency for the entity. |
Lot Selection Method | 27 | Specifies the lot selection method the system uses to relieve lots of a security held by the entity. |
PACE Performance Fields | ||
Performance Price | 4598 | This field is not required for writeoff transactions. |
Performance Amount Local | 4597 | This field is not required for writeoff transactions. |
Settlement Information | ||
Broker Name | 1235 | Specifies the name of the primary broker. |
Broker Code | 88 | Specifies the code that represents the broker. |
Clearing Broker | 1236 | Specifies the name of the clearing broker, if different from the trade broker. |
Clearing Broker Code | 1237 | Specifies the code for the clearing broker. |
Custodian Bank Name | 1146 | Specifies the name of the custodian bank responsible for the trade. The field lookup allows you to select the custodians that have bank account relationships defined for the entity or for the composite associated with the entity. When you select a value, the system displays values for the Custodian Bank Code, Custody Bank Account Number field, and Custody Bank Subaccount field, based on the bank account relationships that apply to the transaction. NOTE: You must establish a relationship between the custodian bank and your entity prior to booking the trade. |
Custodian Bank Code | 1240 | Specifies the code of the custodian bank. |
Custody Bank Account Number | 1660 | Specifies the custodian bank primary account number. The panel displays the value associated with the selected bank account relationship for the custodian. |
Custody Bank Subaccount | 1661 | Displays the custodian bank subaccount number. |
Settle Instructions 1 | 1897 | Allows you to add settlement notes. |
Settle Instructions 2 | 1898 | Allows you to add settlement notes. |
Settle Instructions 3 | 1899 | Allows you to add settlement notes. |
Settle Instructions 4 | 1900 | Allows you to add settlement notes. |
Settle Location | 43 | Specifies the location in which the trade is settled. |
Other Information | ||
Transaction Notes | 56 | Contains user defined information about the trade. |
Original Trade Ticket Number | 761 | Contains the trade ticket identification number. |
Offset to Cost Account Description | 1828 | Specifies the offset account description. |
Offset to Cost Account | 1825 | Specifies the offset account. |
User Defined Priority | 2862 | Specifies the user generated number that determines the event sub priority. That is, after the system accounts for the event sequence and corporate action sequence. |
Order Number | 1092 | Specifies the order number of the transaction. This can be the same for multiple lots. |