SmartInvestments - Position Transactions Content Link

• Overview
• Viewing and Editing a Position Transaction

• Entering a Position Transaction
• Manual Method

• Electronic Download Method
• Deleting a Position Transaction - Effects

of Transaction Types on Cumulative Shares, Cost and Cumulative Tax - Example of Average Cost Calculation

Overview

When viewing an investment position, the user can access this content link to view, create, edit or delete transactions related to the position.

By default, transactions are sorted by date beginning with the most recent. Note: This content link is visible only to users who have the Show Investment Transactions license enabled in User Accounts

• User Rights.

Note: Personal holdings (i.e., bank accounts, notes receivable, personal property and real estate positions) do not have transactions and therefore do not have a Position Transactions content link. Note the following:

• If the position or its associated account is qualified or tax deferred, the Cumulative Tax column is blank.
• For all columns to be calculated, the Roll Up: Transactions option must be selected on the associated accounts' Account Detail content link.

The transactions list can be exported to an Excel spreadsheet by clicking the Options button and selecting List Options > Export List. Learn more about exporting lists.

Viewing and Editing a Position Transaction

To view a transaction, click its first-column hyperlink (the date, by default) to open the Investment Transaction dialog box.

Make changes to the transaction if necessary and then click the OK button. When a transaction is modified, it is automatically validated. Note: The Transfer check box is primarily for informational purposes. However, some investment reports that track purchases and withdrawals (such as the Investment Performance Summary) ignore buy and sell transactions that have the Transfer option selected. The reports ignore those transactions to ensure that purchases and withdrawals for an account are not overstated when money is transferred from one fund within the account to another fund within the account. In the case of a transfer from one fund to another, the transaction amount is ignored because the user's out-of-pocket expense did not increase. However, in terms of tax cost and calculating gain/loss for a specific position, the value of a buy-transfer transaction is treated identically to that of a buy transaction.

Entering a Position Transaction

Watch the Training Class: Creating Positions and Transactions

Manual Method

• On the Position Transactions content link, click the Options button and select New 'Transaction' record to open the Select a Transaction Type dialog box.
• Select a transaction type from the list to open the Investment Transaction dialog box (for details about how the transaction type affects the position, see Effects of Transaction Types on Cumulative Shares, Cost and Cumulative Tax). The Investment Transaction dialog box opens.

• Enter the details of the transaction, noting the following:
• Generally speaking, the user must complete two of these three fields: Transaction Amount, Number of Shares, Price Per Share. SmartOffice can automatically calculate the third field using the values entered in the other two.

• The user can create a Miscellaneous or Non-Financial-type transaction by completing only the Number of Shares field. This can be useful in various situations, such as when the user needs to balance a position or to track a managed account for which transaction information is not available.

• All transaction types allow a value of 0 in the Transaction Amount field. This enables the user to formally liquidate a security that has become worthless, which updates cost basis and position

status. - Click one of the following buttons: -

Save: This button saves the new transaction without refreshing the position list to display up-to-date values. If you are entering multiple transactions, this button will help you do so faster.

• Save & Validate: This button saves the new transaction and refreshes the position list to display up-to-date values for all positions entered. When entering multiple transactions, click this button after entering the last transaction.

Tip: Buy and sell transactions can be entered more quickly by clicking the Options button and selecting Buy or Sell.

Electronic Download Method

Users who subscribe to certain data providers such as DST and Pershing can download account position transactions directly from those providers. For more information and a list of all supported providers, see Investment Data Downloads.

Note: SmartOffice calculates certain values only when the data is first downloaded; if this data is subsequently updated or corrected, the dependent values are not recalculated. To recalculate these values, click the Options button and select Validate Transactions on the Position Transactions List.

Deleting a Position Transaction

• On the Position Transactions content link, tag a position.
• Click the Options button and select Delete 'Transaction' record.

• When the confirmation message displays, click the Yes button.

Effects of Transaction Types on Cumulative Shares, Cost and Cumulative Tax

The table below describes the effects of different SmartOffice transaction types on Cumulative Shares, Cost and Tax Basis. When referring to the table, note the following: -

For all transaction types, the table indicates increases (+), decreases (-) and no effect (0).

• For transaction types labeled "Cash," the table indicates what occurs when that transaction contains no shares/units.
• For transaction types labeled "Share," the table indicates what occurs when the transaction contains no dollar amount.

Note: Any transaction that is flagged as a Cancel/Reverse transaction has no effect on these calculations. These transactions are treated as non-financial transactions.

Transaction Type Cumulative Shares

Cumulative Cost Cumulative Tax

Buy +

+ +

Sell

• *
• *

Dividend (Reinvested) +

0 +

Dividend (Cash) 0

0 0

LTCG (Reinvested) +

0 +

LTCG (Cash) 0

0 0

STCG (Reinvested) +

0 +

STCG (Cash) 0

0 0

Cash Fee (Fee paid in cash) 0

0 0

Shares Fee (Fee paid in account)

• 0
• Principal (Return of)

0

• Distribution (Reinvested)

+ 0

+ Distribution (Cash) 0

0 0

Deduction 0

0 0

Tax Credit 0

0 0

Interest (Reinvested) +

0 +

Interest (Cash) 0

0 0

Misc. (Cash) 0

+ or - + or -

Misc. (Share) +

0 0

Misc. (Cash/Share) +

+ or - + or -

Adjust Tax 0

0 + or -

Adjust Cost 0

+ or - 0

Initial Position** +

0 0

Non-Financial 0

0 0

Undefined (Cash) 0

+ or - + or -

Undefined (Share) +

0 0

Undefined (Cash/Share) +

+ or - + or -

* See Example

of Average Cost Calculation

** The Initial Position transaction

type is created by a download interface and contains a transaction date and shares, no dollar value.

Example of Average Cost Calculation

Date Type

Share CumlShare

Price Dollar Value

CumlCost CumlTax

3/2/01 Buy

400 400

$25 $10,000

$10,000 $10,000

4/4/01 STCG

100 500

$26 $2,600

$10,000 $12,600

5/4/01 Buy

300 800

$27 $8,100

$18,100 $20,700

7/9/01 Buy

250 1,050

$30 $7,500

$25,600 $28,200

10/1/01 Sell

350 700

$31 $10,850

$14,750 $18,800

Basis Per Share = Cumulative Basis ÷ Total Shares Held

= $28,200 ÷ 1,050

= $26.8571 Cumulative Tax = Cumulative Basis − Cumulative Basis Reduction

= $28,200 − (350 shares × $26.8571)

= $28,200 − $9,400

= $18,800