Make a Cost Adjustment

With Eagle's Accounting solution, you can adjust the booked cost for a specific lot using the Increase/Decrease Cost Adjustment panel and can view the cost adjustment activity in the Position Viewer tool.

You can also use the Book Impairment 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).

Execute a Cost Adjustment

To execute a cost adjustment:

In Accounting Center, in the left navigation pane, click Transactions > Adjustments > Cost Adjustments > Increase/Decrease Cost Adjustment.
You see the Increase/Decrease Cost Adjustment panel.
Complete the options on the Increase/Decrease Cost Adjustment panel.
In addition to entering the entity and security identifier, you must enter a value for the following:
–  Event Type. Determines the business intent of the event. Options include Increase Basis and Decrease Basis.
–  Choose Open Lot. Specifies the lot for which you are making the cost adjustment.
–  Current Cost Adjustment Local. Specifies the amount of the adjustment.
Click Submit.
Close the Cost Basis Adjustment bottom tab to return to the Accounting Center.

On this page

Increase/Decrease Cost Adjustment Panel Options

In the Cost Basis Adjustment panel, you can execute a cost adjustment. Note that 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 abbreviated name of the entity.
Base Currency	86	Displays the base currency of the entity.
Accounting Basis	21	Specifies the accounting basis.
Security Information
End Date	221	Specifies the end of period date.
Event Type	55	Specifies the type of event. Available options include Increases Basis and Decreases Basis.
Long/Short Indicator	15	Indicates whether the position is long or short. Available options include Long and Short.
Issue Name	961	Specifies the name of the security.
Ticker	13	Specifies the symbol used to uniquely identify a security.
Xref Type	1234	Displays the cross reference type associated with the security.
Xref Security ID	1233	Specifies the cross reference identifier associated with the security.
Primary Asset ID	14	Specifies the identification number of the primary asset ID type for 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.
Accounting Information
Choose Open Lot	962	Displays a list of open lots for which you can process a cost adjustment.
Event Type	502	Displays the business intent of the transaction.
Trade Date	35	Specifies the effective date of the trade. The trade date cannot be greater than the post date, accounting date, or settlement date.
Accounting Date	36	Specifies the date the trade is reported. The accounting date must be greater than the trade date.
Monthly Accounting Date	4733	Displays the month end accounting date.
Trade Quantity	159	Displays the quantity of the open adjustment event.
Unit Price	160	Specifies the price of the security per unit.
Original Cost Local	162	Displays the total cost of the executed trade.
Current Cost Local	128	Displays the current identified cost basis in local currency.
Current Cost Adjustment Local	50	Specifies the amount of the adjustment.
Local to Base FX Rate	87	Displays the local to base foreign exchange rate.
Current Cost Adjustment Base	50	Displays the base amount of the trade.
Target Event ID	26	Displays the target event ID type.
Custodian Bank Name	1146	Specifies the name of the custodian bank.
Custodian Bank Code	1240	Specifies the custodian bank code.
Custody Bank Account Number	1660	Specifies the custodian bank account number.
Custody Bank Subaccount	11852	Specifies the custodian bank subaccount.
Other Information
Original Trade Ticket Number	761	Specifies the origin of the trade ticket number.
Transaction Notes	56	Specifies the comments about the transaction.
Reason	1828	Indicates the reason for the cost adjustment.
Offset Account	1825	Specifies the offset account.
Recalculate Yield	1257	Determines whether to recalculate yield. Options include Yes and No

View Cost Adjustment Activity in the Position Viewer Tool

Before the cost adjustment was made, the position had a current cost local value of $20.000.00.

Position Viewer - Cost object Open Lots tab

With the "increase in basis" adjustment of $555.00, the cost is adjusted to $20.555.00. You can view the cost adjustment activity on the Open Adjustments tab of the Cost object within the Position Viewer tool.

Position Viewer - Cost object Open Adjustments tab