Issue

When running a period update I am receiving error message:

A cost base adjustment cannot be matched

Cause

This happens when there is a tax statement with cost base adjustment e.g. AMIT/Tax Deferred or any other cost base adjustment event processed after the date of the corporate action e.g. Takeover/Merger or Split/Consolidation or full disposal of an investment (which is manually matched off).

Class tries to match all disposals, cost base adjustments, and split/consolidation at the same time, therefore, it is unable to determine the correct quantity as at the split / consolidation date.

Resolution

Corporate Action processed before the Tax Statement or event with cost base adjustment e.g. Capital Return.

Navigate to Fund Level > Periodic Processing > Maintain Parcel Matches

1. Choose the relevant security e.g. MGG
2. As per the image below, the MGG takeover/Merger event is processed on 8/12/2020 and then later on 30/06/2020 Tax Statement was processed with AMIT
   Delete the corporate action on 8/12/2020
3. Edit the Tax Statement and click on Use Distribution Date if Tax Statement is processed via Tax Statement Console. If it is not processed via Tax Statement console (i.e. processed via Transactions > Fund Income > Distribution-Tax Statement), change the tax statement date to prior to 8/12/2020, ideally the distribution date and save.
   
   If there is any cost base adjustment event e.g. Capital Return please edit and process prior to corporate action date.
4. Reprocess the Corporate Action and retry processing the Period update.

If an investment is fully disposed and manually matched via Maintain Parcel Edit Points.

1. Choose the relevant security
2. Click on the Edit on full disposal event (refer to image below), untick from the matched parcel (03/07/2020) and Save.
3. Edit the Tax Statement and click on Use Distribution Date if Tax Statement is processed via Tax Statement Console. If it is not processed via Tax Statement console, change the tax statement date prior to 30/11/2020, ideally the distribution date and save.
   If there is any cost base adjustment event e.g. Capital Return, edit and input date prior to the disposal event.
4. Retry processing the Period update