Process a Cost Adjustment

Owned by Nancy Cohn (Deactivated)
Last updated: Jul 17, 2023
1 min read

In the Book Impairment Adjustment panel, you can adjust the booked cost for a specific lot. You can increase or decrease the cost basis based on an adjustment amount.

You can also use the Increase/Decrease Cost Adjustment panel to execute a cost adjustment. While the Book Impairment Adjustment panel only adjusts amortized cost, the Increase/Decrease Cost Adjustment panel can adjust all cost fields, However, the Increase/Decrease Cost Adjustment panel does not provide support for entities that follow International Financial Regulatory Standards (IFRS).

To process a cost adjustment:

  1. In Accounting Center, in the left navigation pane, click Transactions > Adjustments > Cost Adjustments > Book Impairment Adjustment.
    You see the Book Impairment Adjustment panel.

  2. Click the Impairment Processing Flag field and select a value of Lot.

  3. In the Entity Information section, specify an entity and accounting basis. 

  4. Click the Impair by Option field and select a value of Amount.

  5. Click the Event Type field and select a value of Cost Adjustment.

  6. Click the Writeup/Writedown Switch field, and indicate whether the cost adjustment increases or descrease the cost basis. 
    Options include:
    - Increase Basis/Writeup
    - Decrease Basis/Writedown

  7. Complete the remaining options on the Book Impairment Adjustment panel.
    You must indicate if the lot is long/short, identify the security and open lot, and enter the Local Cost Adjustment amount. 

  8. Click Submit. 

After you make a cost adjustment, you can view the cost adjustment activity on the Open Adjustments tab of the Cost object within the Position Viewer tool.