Write Off Securities

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: DELIVER. Used for deliver transactions. WRITEOFF. Default. Used for writeoff transactions.
Long/Short Indicator	15	Indicates whether the position is long or short. Options include: Long Short 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. NOTE: You must establish a relationship between the custodian bank and your entity prior to booking the trade.
Custodian Bank Code	1240	Displays the code of the custodian bank.
Custody Bank Account Number	1660	Displays the custodian bank primary account number.
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.