With the first quarter up and running, it’s highly possible that you recently went through the process of receiving your latest valuation. Your 409A page has been updated and you are no longer being reminded to request a new FMV. What a relief! You only have one task left: updating your FMVs section for your stock based comp (Compliance > Financial Reporting > FMVs). In theory, this should be the easiest part of your valuation journey.
After navigating to the FMVs page, you click the black plus sign, enter the effective date along with the fair market value, and click “Save fair market values”...only to have the system respond by telling you that you cannot add the FMV. Something about a “last closed date of xx/xx/xxxx” is getting in your way! So, how do you fix it?
Let’s use the above image as an example of this scenario. In this example, you tried to enter your FMV’s effective date as 11/15/2022, so what’s the deal with this message about 01/31/2023? Is it because you didn’t receive your final valuation until then?
This is actually referring to the end date of your latest report in the Financial Reporting module, which you likely ran to record last month’s expenses. Since the data through the end of January 2023 has already been populated, the system doesn’t want to let you meddle with anything that might create a data conflict. This is where the fix comes in.
To make the system happy and free from potential conflict, you must delete any reports that ran through the date you are attempting to enter for your new FMV. In our example, that would include your January 2023, December 2022, and November 2022 reports. Once these are deleted, your FMV settings will open up and allow you to input your 11/15/2022 effective date and save changes.
Lastly, you'll want to run new reports to have your updated data reflected. You can rest a little more easily knowing your FMVs are all taken care of... for now, anyway!
Still have questions? Feel free to e-mail us at 718@carta.com