Adjust/Close Investment Subsidiary

These steps explain how to adjust or close an investment subsidiary in a simple three-part process.

  • For existing investment items, the adjust and close features are 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.

  1. Launch Tool #993 INV 1: Work With CU Investments.

  2. Highlight the investment to adjust/close and select either Adjust or Close.

  3. In the Tran post date field, enter the date that the activity needs to be posted to the subsidiary record history.

  4. In the Accrued thru date field, enter the effective date of the J/E if you intend to post to the G/L.

  5. Enter a description of the activity (why you are closing/adjusting (principal, premium, discount, accrued, or income)).

  6. Enter a Debit/Credit amount for the desired G/Ls to be adjusted.

    • The Life Total column to the right of the J/E entry screen for Principal, Discount, Premium and Accrued balance will need to be cleared to zero to close. Any account attached to the Asset that has a balance needs to be adjusted.

  7. Use enter to accept the entries.

    • Remember: The J/E must balance.

  8. Click Comments to enter additional information on the adjustment, if applicable.

  9. Click Create J/E to save the adjustments.

    • If you need to impact only the subsidiary record, then you will need to delete the J/E you created in Tool #61 Create/Post GL Journal Entries. See below for directions to post/delete the J/E.

Validate Activity

  1. From Tool #993 INV 1: Work With CU Investments, highlight the previously adjusted investment or closure.

    • For closures, click Incl Closed Investments, and then highlight the investment.

  2. Select View.

  3. For Adjustments, verify the amounts are correct in the Subsidiary Detail section at the bottom of the subsidiary record.

    • This information is what is transferred to the Trial Balance, and the Trial Balance should balance the GL.

  4. Validate the activity posted was as expected.

    • Does the balance reflect what you expected?

Post/Delete the J/E

  1. Launch Tool #61 Create/Post GL Journal Entries.

  2. Highlight the J/E you just created to post/delete it.

    • This J/E should have an ID of “IN” and the effective date you entered in the Tran post date field.

    • Only delete journal entries for adjustments you need to impact only the subsidiary record.

  3. Select Post or Delete.

    • On the pop-up, verify the correct J/E was selected and click Post or Delete Entries again to confirm.

Learn More

Learn more about adjusting investments.