Skip to content

Adjustment

Adjustments are a catch-all transaction type for manual corrections to either cash or asset balances. Unlike the paired types (Transfer, Cash Transfer, FX Conversion), adjustments are standalone — each adjustment is a single, independent row.

🔑 Key Properties

Property Value
Code ADJUSTMENT
Cash effect Optional (± any amount)
Asset effect Required (± any quantity)
Tax event No

📊 Use Cases

Adjustments are used when no other transaction type fits:

  • Correcting import errors — e.g., a broker import missed a corporate action
  • Stock splits / reverse splits — adjust quantity without cash movement
  • Gifts — receiving or giving shares
  • Initial balance setup — bootstrapping a portfolio from a snapshot
  • Corporate actions not covered by other types (spinoffs, mergers, etc.)

Promote to Transfer

Two ADJUSTMENT rows with opposite quantities, same asset, and different brokers can be promoted to an Asset Transfer pair. This is useful when you initially recorded separate adjustments and later want to link them as a transfer.

📐 Impact on Cost Basis

Adjustments with positive quantity increase the lot count (FIFO). The cost basis for adjustment-created lots depends on whether a Cost Basis Override is provided:

  • With override: the specified value is used as the per-unit acquisition cost (WAC — Weighted Average Cost)
  • Without override: the lot is created with zero cost (free acquisition — e.g. gifts, airdrops)

Per-unit value

The Cost Basis Override is the average cost per single unit of the asset. To get the total cost of the transferred block, multiply by the quantity:

\[\text{Total cost} = \text{WAC} \times \text{quantity}\]

🏦 Automatic Cost Basis on Transfers

When transferring assets between brokers, LibreFolio automatically computes the Cost Basis Override on the receiving side using the Weighted Average Cost (WAC) of the source broker's position.

Learn more

For the full formula, examples, and edge cases, see the dedicated page: 📊 Weighted Average Cost (WAC)

✏️ When to Override Manually

The automatic formula works for the standard case (same fiscal regime, no tax events at transfer). In the following scenarios the user must set the value manually:

Scenario What to set
Normal transfer Leave empty — auto-calculated
Exit Tax Market value at transfer date (jurisdiction-specific)
Inheritance Fair market value at date of death (or stepped-up basis)
Gift Donor's original cost basis (carryover basis)
Corporate action Adjusted basis per corporate action terms

User Responsibility

When manually overriding the cost basis, the user is responsible for the correctness of the value. LibreFolio does not validate override amounts against tax rules — consult a tax advisor for jurisdiction-specific guidance.