Instalments / Brokerage adjustments are recorded through the Transaction List.
|From the Main Toolbar, go to Accounting.
|Select Transaction list
From the Transaction List screen, select New Transaction. From the drop down list, select Bank Statement.
- Input the Date of the Cost Base Adjustment and a Reference number. You can include a description in the Description box.
- Under the Account heading, select the bank account from the Select an account box. Click on the next Select an account box. Begin typing and select the Investment account 77600/INVESTCODE in the Input Account Box.
Input 0 under the units column and input the cost base adjustment dollar amount in the Debit/Credit field. (When an instalment dollar amount is recorded to an investment and zero units have been input, the Instalment / Brokerage Adjustment Details panel will appear on screen.)
You have to input "0" in the Units field and should not leave the field blank. Otherwise, this will be treated as a manual revaluation by SF360.
Complete the following fields in the Instalment / Brokerage Adjustment Details panel:
Field Explanation Settlement Date The Settlement Date is the date the consideration for the investment was settled. This date will automatically appear as the purchase date input if step 2 has been completed. This field is fully editable by selecting a date from the calendar. Brokerage (includes GST) Input the brokerage cost for the purchase (including GST). Consideration The consideration will be automatically calculated as the purchase price less brokerage (if any). Contract No. Input the Contract Number for the purchase. Account No. Input the investment trading account number the investment was purchased under. HIN Input the Holder Identification Number. Use selected parcel contract date This check box is selected by default. The instalment will use the Contract Date from the parcel you have selected. Select Parcel From the drop down list, select the parcel for which this instalment / brokerage is linked to.
After you have entered all information for the transaction, select Post to add the transaction and to view the Transaction List screen, or select Post & Add Another to add the transaction to the Transaction List, but remain on the Bank Statement screen.
Adjust a Cost Base of an Investment if it is incorrect
If the cost base of an investment is incorrect, you can adjust it downward or upward completing the steps above.
- Instead of using a Bank Statement transaction type use a Journal;
- Record the adjustment by inputting a 0 in the Units field;
- Instead of using a bank account as the other side of the transaction use the same investment account. For this line item entry leave the units field blank and input the corresponding adjustment amount as a Debit/Credit.
We have typed an incorrect value when recording the cost base for a parcel of BHP Shares.
Its cost base has been overstated by $200 and requires a $200 cost base adjustment downwards.
The transaction would be entered as follows:
"0" has been entered in the units for the credit entry as we are reducing the cost base.
If we were adjusting the cost base upwards, the "0" would be entered in the debit entry and the credit entry would have no units entered.