Adjust Non-Credit Loss

In the Book Non Credit Loss Adjustment panel, you can adjust or fully/partially reverse the noncredit loss associated with a previously entered impairment. This option allows you to record non-credit loss adjustments when credit losses are not applicable. You can adjust the loss by lot only for a single entity. Entering a negative amount in this panel increases the loss while entering a positive amount decreases the loss.

When you process an impairment, you can include credit/non-credit losses for the impairment in certain cases. When you book a subsequent impairment, the system reverses the previous noncredit loss. You can then use the Book Non Credit Loss Adjustment panel to adjust the noncredit loss.

To adjust the non-credit loss associated with an impairment:

In Accounting Center, in the left navigation pane, click Transactions > Adjustments > Cost Adjustments > Book Non Credit Loss Adjustment.
You see the Book Non Credit Loss Adjustment panel.
In the Entity Information section, identify the entity and accounting basis associated with the adjustment.
In the Security Information section, identify the security associated with the adjustment.
Click the Choose Open Lot field and select the open lot associated with the adjustment.
Click the Increase/Decrease Switch field and indicate whether the adjustment increases or decreases non-credit loss.
Options include:
- Increase Noncredit Loss. If you want the adjustment to increase non-credit loss, you must specify a positive adjustment amount.
- Decrease Noncredit Loss. If you want the adjustment to decrease non-credit loss, you must specify a negative adjustment amount.
Click the Non-Credit Loss Local Adjustment field and specify the amount of the non-credit loss adjustment.
A negative amount decreases the loss. A positive amount increases the loss.
Complete the options on the Book Non Credit Loss Adjustment panel.
In the Transaction Notes field, you can enter a note about the transaction
Click Submit.