Adjust/Close Investment Subsidiary
These steps explain how to adjust or close an investment subsidiary in a simple three-part process.
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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.
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Launch Tool #993 INV 1: Work With CU Investments.
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Highlight the investment to adjust/close and select either Adjust or Close.
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In the Tran post date field, enter the date that the activity needs to be posted to the subsidiary record history.
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In the Accrued thru date field, enter the effective date of the J/E if you intend to post to the G/L.
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Enter a description of the activity (why you are closing/adjusting (principal, premium, discount, accrued, or income)).
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Enter a Debit/Credit amount for the desired G/Ls to be adjusted.
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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.
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Use enter to accept the entries.
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Remember: The J/E must balance.
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Click Comments to enter additional information on the adjustment, if applicable.
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Click Create J/E to save the adjustments.
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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.
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Validate Activity
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From Tool #993 INV 1: Work With CU Investments, highlight the previously adjusted investment or closure.
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For closures, click Incl Closed Investments, and then highlight the investment.
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Select View.
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For Adjustments, verify the amounts are correct in the Subsidiary Detail section at the bottom of the subsidiary record.
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This information is what is transferred to the Trial Balance, and the Trial Balance should balance the GL.
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Validate the activity posted was as expected.
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Does the balance reflect what you expected?
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Post/Delete the J/E
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Launch Tool #61 Create/Post GL Journal Entries.
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Highlight the J/E you just created to post/delete it.
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This J/E should have an ID of “IN” and the effective date you entered in the Tran post date field.
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Only delete journal entries for adjustments you need to impact only the subsidiary record.
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Select Post or Delete.
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On the pop-up, verify the correct J/E was selected and click Post or Delete Entries again to confirm.
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