For Portfolios on Class, you have the ability to set the general ledger valuation at either book cost or market value. Once you run a period update, the values on the Statement of Financial Position and the Operating Statement will show at either book cost or market value, depending on which setting you have selected.
This page explains how this setting works.
Client view and reports are not impacted by this setting, it only impacts the General Ledger (Statement of Financial Position and the Operating Statement)
Selecting the valuation method of holding accounts for Class Portfolio
You can set the valuation of Class Portfolio holding accounts to be either value at book cost (default) or market value. This setting can be set at either Business or Fund level.
What happens to my General Ledger reports if I change the setting?
For any years that a period update has been run, the Statement of Financial Position and Operating Statement will retain the existing report information.
Any subsequent period updates will reflect the setting selected at the time the period update is run.
If you change from market value, to book cost, in the financial year that you change the setting, there will be an increase/decrease in market value as you are ‘effectively’ repricing the asset from the market value to the book cost in that year.
If a period update has already been run (prior to this feature being added on 30 April 2016), and you would like to carry the holding accounts at book cost (from inception on Class), rollback the relevant period update(s) and run the period update(s) again. This will ensure that the holding accounts are carried at book cost.