You are correct that both situations throw you books out of balance. You are changing the balance in one account without an offsetting entry in some other account. Because Navigator is a double-entry bookkeeping system, it forces you to make the correct entry on both sides and if you don’t the error shows up in reports.In both cases a good question to ask is. “Why did the amount change?” The answer will help you identify which account to put the offsetting entry.
For instance, if the cost basis was entered incorrectly when the security was purchased last year, you need to go back to last year and reenter the purchase tranasaction. Then when you update prices, Navigator will correct the Unrealized Gain and Loss account (UGL) to take into account the new cost basis. It is easiest to update prices for the 12/31 of that year then update starting balances for the current year to bring the new UGL balance forward.
If the cost basis changed because of some event like a stock split or dividend, entering the transactions for that event will update the cost basis.
In general, the best way to change the cost basis is through a transaction like return of capital, buy, sell, etc.
- David
FNI Technical Support
[This message has been edited by David (edited 01-10-2008).]
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posted 01-10-2008 09:15 AM
