Create adjustment transactions

This command automatically creates adjustment transactions to align the book value of investments with their current market value and, for investments denominated in a foreign currency, with current exchange rates. Adjustment transactions can be created multiple times during the year. For year-end adjustments, see Investment Accounting Opening and Closing the Year.

Define Current Market Values

Set Up the Current Prices

In the Items table, enter the current market price for each investment in the Price Current column.

You can:

• Enter the current prices manually, including only for the investments for which you want to create adjustment transactions.
• Use the Update Market Prices command to import and update current prices for multiple investments.

Current Exchange Rates

For investments denominated in a foreign currency, the current value in base currency is automatically calculated using the current exchange rate defined for the corresponding currency in the Exchange rates table.

The current exchange rate is the exchange rate entered without a specific date. For more information, see Items Table with Investments List.

Adjustment Transactions Dialog

When you run the Create adjustment transactions command, a dialog asks you to enter the date to be used for the adjustment transactions. By default, the current date is suggested.

All adjustment transactions created by the command are recorded with the specified date.

Commit Changes Dialog

Before the adjustment transactions are recorded, the Commit changes dialog displays a preview of all the transactions that will be created, allowing you to review them before confirming the changes.

Adjustement Transactions

Adjustment transactions are generated and grouped by investment. If both a market price adjustment and an exchange rate adjustment are required for the same investment, the corresponding transactions are kept together.

Adjustment transactions are recorded using the Asset Account defined for the investment in the Items table, increasing or decreasing its book value. The offsetting entry is recorded in the corresponding gain or loss account.

If the following accounts are defined in the Accounts Settings dialog, the program uses them to record the adjustments:

• Unrealized Gain / Unrealized Loss for market price adjustments.
• Unrealized Exchange Rate Gain / Unrealized Exchange Rate Loss for exchange rate adjustments.

If the required accounts are not defined in the Accounts Settings dialog, the program inserts descriptive placeholder accounts in the generated transactions.

Once the adjustment transactions have been recorded, verify that the balances of the Asset Accounts match the current values of the corresponding investments in the Items table. For more information, see Create Adjustment Transactions.

In the following cases, no adjustment transactions are created:

• The book value already corresponds to the current market value and, for investments denominated in a foreign currency, the book exchange rate corresponds to the current exchange rate.
• The investment has a current quantity of zero.
• No current market price is defined for the investment.

Error Messages

• Items table not found: The Items table is not present in the accounting file.
  • Add the Items table to your file.
• No Asset found in the Items table: The Items table does not contain any valid Assets.
  • Add Assets to the Items table.
  • A valid Asset must have an ID and an Asset Account.
• No Asset with current price found in the Items table: No Asset with a valid current price was found in the Items table.
• The carrying amounts are already aligned with the current market prices. No unrealized gains or losses have been generated: The book values of the investments are already aligned with their current market values and, where applicable, current exchange rates. No adjustment transactions are required.