Adjusting Investments (Including Closing)

Screen ID: 

Screen Title: 

Panel Number:

UINVS-02

Adjust Investments

6487

Click to magnify

 

This screen appears after accessing Tool #993 INV 1: Work with CU Investments, selecting an investment, and using "Adjust" or "Close".

SEE ALSO: CU*BASE Investments Overview and Step-by-Step Procedures

 

Integration between CU*BASE and your imaging solution

This screen has a link to your imaging solution to further integrate with CU*BASE.  The “Scan e-Document” button is used for scanning a document into your imaging solution. 

  • Remember: Only documents warranted by the CU*Spy online vault can be scanned into that vault.

  • Clients with in-house imaging solutions should contact Imaging Solutions for assistance configuring links for use with your vault.

Creating Adjustment Ledger Entries

For existing investment items, the Adjust/Close feature is available to create an adjusting entry for the subsidiary ledger as well as to generate a journal entry which can then be posted to the General Ledger via Tool #61 Create Post GL Journal Entries.

This screen is used to create a journal entry for the investment sub-ledger, while also creating a journal entry to be posted to the general ledger separately. Depending on how the screen was accessed, it can be used to open or close a matured investment, record income received or gains/losses, or any other type of adjustment to the subsidiary ledgers. Notice the “Life Total” column on the right-hand side of the screen, showing the net result of all transactions already posted throughout the life of the investment.

  • IMPORTANT: The transaction is coded with a transaction type according to the key (Open, Close or Adjust) used to access the screen. Therefore, if you have used Adjust (F11) but wish to close the investment, use Backup (F3) and then use Close (F9) instead to ensure the transaction is coded properly as well as completed with all appropriate additional steps. Changing the transaction description will not make an adjusting transaction a closing one, or vice versa.

Start by entering the date to which this transaction should be posted (usually the current date), and an appropriate transaction description (remember that changing the description will not change the type of transaction being processed; it will simply change what appears in transaction history).

Next, enter the debit and credit amounts for this transaction. When using the Settlement value field for an offsetting entry, be sure to enter the G/L account number as well.

When done, use Enter to calculate debit and credit totals and verify that the transaction is in balance. The last line will show the total of all debits and credits for this transaction, with a Net total for this transaction (should be zero). If total debits do not equal credits, an error message will appear when the transaction is posted.

Once everything looks right, use Create Journal Entry (F5) to post the transaction to the subsidiary ledger, and create a corresponding journal entry for the general ledger.

Following are examples of typical entries that can be made on this screen:

Adjusting Investment Subsidiaries

Examples of typical adjustments:

    • An adjustment (up or down) to income to match an incoming income check, either because the item matured prior to the end of a month for which accruals have already been run, or to post income received.

    • NOTE: If this adjustment involves a change to the date income was last accrued for this item, use the Accrued thru date field to enter a new date to be recorded as the Last Accrued date on the investment record. For example, if you receive an income check that includes income through the 15th of next month, the Accrued thru date would be set to the 15th for the coming month, so that the next accrual would only includes days after that date.

    • Adjustments to correct errors such as posting to the wrong subsidiary (premium instead of discount, etc.) or posting incorrect amounts.

Closing an Investment

    • A closing entry is made when an investment matures or is sold, to credit principal, book the final income/expense for the discount/premium accounts, account for any gain or loss, and clear accrued income.

    • This transaction type will also mark the investment as closed. On investment inquiry screens, the item will be marked showing it has been closed. Closed investments can be purged at regular intervals according to credit union policy.

Field Descriptions

Field Name

Description

Tran post date

Enter the date that should be used as the post date on this ledger entry.

  •  Remember that although you can post the subsidiary entry to a previous or future date, the general ledger J/E cannot be posted into a closed month. Also be careful about backdating these transactions, as that could affect transaction history and resulting balances. Be careful about back dating these transactions because the resulting balance on any history item from the adjustment post date forward does not recalculate. You will need to maintenance each transaction line item on the transaction register.

Accrued thru date

If this entry should result in a change to the Last Accrued date on this investment record, enter the new date here. When the transaction is posted, this date will be entered onto the investment record. The next time accruals are processed, this date is compared to the current date to determine how many days of income should be accrued.

Tran description

Enter a description to be used for this ledger entry. Depending on the tool that was used to access this screen, this may already be filled in as either  “CLOSE” or “ADJUST” but can be changed manually as needed. (Remember that changing the description does not change the type of transaction being processed; only the description shown in transaction history will be affected.)

This description will display on transaction history for this investment as well as various reports.

Principal balance

Discount balance

Premium balance

Income earned

Accrued balance

Gain/loss amount

Use these fields to enter the amounts to be debited or credited to the various subsidiary accounts for this investment. The G/L Accounts shown represent the accounts that will be affected in the General Ledger for each item.

  •  An error message will appear upon using Enter if both a debit and credit entry are placed on the same line:

3015-Both debit and credit amounts cannot be greater than zero.

Settlement value

This line is used to post offsetting entries using an activity “clearing” or settlement account, or could represent the cash offset account. Enter both the G/L account number and the debit or credit amount.

SEE ALSO: Using a Subsidiary Clearing Account

Buttons

Buttons

Description

Comments (F1)

Use this to view or enter miscellaneous comments about this investment.

Create Journal Entry (F5)

Once the entry is in balance, use this to post the entry to the subsidiary ledger and create an “IN” journal entry to be posted to the General Ledger. Be sure to also use the Create/Post Journal Entries feature to review and post the G/L entry that will be created.

Refresh (Enter)

Use this to calculate the total debits and credits for this entry, as well as the Net change to life totals. This can used as often as desired until the entry is in balance, before Create Journal Entry (F5) is used to post.