Portfolio financial

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Portfolio financial

Opening balance

Portfolio uses different years, just like the accounting module.

On prolongation to a new year, an Opening Balance is created in daybook BB.

 

Two types of transactions are created in the Opening Balance:

- Opening Balance: Transactions of type Opening Balance, the number of stock remaining after the previous year at cost price.

- Revaluation: Transactions of type Revaluation, the amount of revaluation that goes with the opening balance at cost price.

 

Together these amounts give the market price. This way it is possible to reverse the revaluations.

If an opening balance was created at market price, revaluations in the previous year would lead to realized results in the next year.

The amount of unrealized results are booked on the general ledger entered in the settings at Temporary account unrealized result.

 

Reconciliation

Transactions entered can be booked by using the procedure Reconciliation to the financial bookkeeping.

This is called reconciliation.

 

Adjusting previous years and creating the Opening Balance

Adjustments can still be made in previous years but this will have an effect on all following years.

Calculated results in transactions can change due to the adjustments in previous transactions (FIFO method).

This can also result in a difference between portfolio and the financial balance if these transactions with changed results are already booked.

These differences are not booked automatically booked.

 

The original amounts booked are saved during reconciliation in the transaction.

Differences in the original amount booked and the new amount calculated are reported with the report Portfolio Reconciliation.

Changed transactions can be reversed and booked again. The original amounts will be reversed and the new calculated amounts are booked.