Create adjustment transactions

This extension automatically generates adjustment transactions to align securities with their fair market value and current exchange rates. Adjustment transactions can be created multiple times throughout the year. For year-end closing adjustments, we recommend also consulting the following page: Investment Accounting Opening and Closing the Year.

Define current market values

Set up the current prices

In the Items table, enter the current prices for each security in the “Price Current” column.
You can choose to:

• Enter the values manually, even only for the securities for which you want to generate adjustment entries.
• Use the Update Market Prices extension to update all prices automatically at once.

Current exchange rates

In the Items table, the value of the security in base currency is automatically calculated by the program using the current exchange rate (without a specified date) defined in the Exchange rates table for the respective currency. See Items Table with Investments List for more information.

Adjustment transactions dialog

The dialog is displayed each time you run the extension and simply ask you to enter the transaction date; by default, the current date is suggested. All the transactions created have the same date.

Commit changes dialog

Before recording the transactions, a preview dialog is displayed, allowing you to review and confirm the adjustments.

In the dialog are reported all the transactions that will be created.

Adjustment Transactions

Transactions are generated and grouped by security. If both a price adjustment and an exchange rate adjustment are created for the same security, the two transactions are kept adjacent.

Adjustment transactions are recorded using the Asset account defined for the security, directly increasing or decreasing its carrying amount. The offsetting entry is posted to an income or expense account. If specific accounts are defined in the  Accounts settings dialog for the following items, the program uses those accounts accordingly:

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

If no accounts are defined in the Accounts settings dialog, the program inserts a descriptive placeholder.

Once the adjustments have been recorded, verify that the Asset account balances match the current values of the Items. For more information, see the explanations on the page: Create Adjustment Transactions.

In the following cases, no transactions are created

• The book value and the market value are identical, and the book exchange rate equals the current exchange rate.
• TheAasset has a current quantity of zero.
• No current market price is defined for the Asset.

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 contains any Asset.
  • 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: All securities are already valued at current market prices and exchange rates.

Compatibility version

To run this extension, you need to use Banana Dev Channel, minimum version '10.2.1'.

You can check your current version of Banana Accounting from the menu: Help > About Banana Accounting+ > Version.