You can use same lot selection to relieve the same lots across multiple accounting bases within an entity in order to keep lots in sync across bases.

Why Lots Structures Become Out of Sync

In Eagle Accounting, a position on one accounting basis works independently from the same position in a different basis. Differences in accounting standards for different accounting bases can result in differences in lot structure and position cost.

A typical cause for these differences is wash sale processing, which is not a GAAP requirement. Wash sale guidelines allow the disallowance of losses from the disposition of securities for tax purposes. The disallowed loss amounts result in the adjustment of the cost basis of open lots that remain in a position after a close transaction is processed. There are scenarios that can also result in the fracturing of open lots if the close quantity is less than the open lot quantity of the lot that receives the disallowed loss. The fracture can result in multiple open lots in a USTAX basis with a total quantity that equates to the quantity of a single lot in a GAAP basis. Disallowed losses are not considered for GAAP accounting. Therefore book cost is not adjusted and fractures do not occur from wash sale processing.

Due to potential differences in lot cost and structure, lot selection logic that occurs during close processing can potentially result in the selection of different lots between bases than if the selection logic was applied to each basis independently.

When you use same lot selection, despite the difference in cost and lot structure, the system relieves the “same” lots across all bases on an entity. The ending result is that the remaining lots in each basis originate from the same lots even though the structure (due to wash sales) and cost may be different.