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The following four scenarios provide examples of the Accounting Basis Lot Selection Rule options. You can specify a value for the Accounting Basis Lot Selection Rule field at the entity/accounting basis level.

Scenario 1

This example uses the option, Use Basis Value Unless Event = IDLOT or VSP. In this scenario all three accounting bases utilize the same Accounting Basis Lot Selection Rule.

Additionally, all "basis specific" trades always use the lot selection method specified on the event. This is illustrated in Sale #4 in the following table.


Event

Primary Basis

Secondary Basis

Non Primary Basis

Lot Selection Method


FIFO

BEST TAX

FIFO

Non Primary Basis Lot Selection Override


Use Basis Value Unless Event = IDLOT or VSP

Use Basis Value Unless Event = IDLOT or VSP

Use Basis Value Unless event = IDLOT or VSP






The following examples illustrate the required processing:

Sale #1

FIFO

FIFO

BEST TAX

FIFO

Sale #2

IDLOT

IDLOT

IDLOT

IDLOT

Sale #3

HCOST

FIFO

BEST TAX

FIFO

SALE #4 basis specific (Secondary)

HCOST


HCOST


Scenario 2

In this scenario:

  • Primary Basis: Use Event Value
  • Secondary Basis: If Event = Primary Basis use Basis Table Else use Event
  • Additional Non Primary Basis: If Event = Primary Basis use Basis Table Else use Event

As with the previous scenario, all "basis specific" trades always use the lot selection method specified on the event. This is illustrated in Sale #4 in the following table.


Event

Primary Basis

Secondary Basis

Additional Non Primary Basis

Lot Selection Method


FIFO

BEST TAX

FIFO

Non Primary Basis Lot Selection Override


Use Event Value

If Event = Primary Basis, then use basis table else use event

If Event = Primary Basis, then use basis table else use event

The following examples illustrate the required processing:

Sale #1

FIFO

FIFO

BEST TAX

FIFO

Sale #2

IDLOT

IDLOT

IDLOT

IDLOT

Sale #3

HCOST

HCOST

HCOST

FIFO

SALE #4 basis specific (Secondary)

LCOST


LCOST


Scenario 3

In this scenario:

  • Primary Basis: Always use Event
  • Secondary Basis: If Event = IDLOT or VSP use IDLOT or VSP Else if Event = Primary Basis use Basis Table
  • Additional Non Primary Basis: Always Use Basis Value

When you set this value, Eagle Accounting uses the lot selection method set on the ESTAR_ACCT_BASIS table when determining the method for non primary basis's lot selection method, regardless of what lot selection method identified by the event specifies. This is illustrated in Sales 1 through 3 in the following table.

The only exception is that all "basis specific" trades always use the Lot Selection Method specified on the event. This is illustrated in Sale #4 in the following table.


Event

Primary Basis

Secondary Basis

Additional Non Primary Basis

Lot Selection Method


FIFO

BEST TAX

FIFO

Basis Lot Selection Override


Use Event Value

If Event = IDLOT or VSP, then use IDLOT or VSP else if Event = Primary Basis, then use Basis Table

Always Use Basis Value

The following examples illustrate the required processing:

Sale #1

FIFO

FIFO

BEST TAX

FIFO

Sale #2

IDLOT

IDLOT

IDLOT

FIFO

Sale #3

HCOST

HCOST

HCOST

FIFO

SALE #4 basis specific (Secondary)

IDLOT


LCOST


Scenario 4: Primary and Non Primary Use Event

  • Primary Basis: Use Event Value
  • Non-Primary Basis: Use Event Value

The following table illustrates this scenario.


Event

Primary Basis

Secondary Basis

Additional Non Primary Basis

Lot Selection Method


FIFO

BEST TAX

FIFO

Basis Lot Selection Override


Use Event Value

Use Event Value

Use Event Value

The following examples illustrate the required processing:

Sale #1

FIFO

FIFO

FIFO

FIFO

Sale #2

IDLOT

IDLOT

IDLOT

IDLOT

Sale #3

HCOST

HCOST

HCOST

HCOST

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