Track Wash Sale Disallowances

As wash sales are generated, the amount of disallowed loss transferred to an open lot is tracked and recorded as the current cost fields are updated. For example, suppose a lot holding has a current cost of $10000.00 with $500.00 contributed by a wash sale adjustment and that half of the holding is closed. The lot cost is reduced by $5000.00 and the wash disallowance is reduced by $250.00. The disallowed loss reduction is reported and the remaining disallowed loss remains available on the open holdings.

As the lot decrements, due to subsequent sale or close transactions, the amount of remaining disallowed loss is proportionately reduced.

About Trade Processing for Identified Lots and Wash Sale Processing

Identified lot (IDLOT) trade processing sends a set of IDLOT trades from the trade panel as a bulked set. This ensures that the trades are submitted to the same engine and in order. The STAR engine takes these IDLOT trades and processes them individually. However, they continue to have separate commit scopes. Wash sale processing is not invoked until the last IDLOT close is processed. When the last IDLOT close is processed, all closes that share the same link event ID (tag 28) are taken into consideration for wash sales.

View Wash Sale Information in Position Viewer

You can view wash sales information by using the Position Viewer tool to view the Wash Sale Adjustments workspace if you convert wash sale adjustment records to the ESTAR database, as shown in the following figure. The Wash Sale Adjustments workspace allows you to view open and close lot adjustments, as well as cancelled open and close lot adjustments. Otherwise, if you store wash sales trade information in the Cost object, you can view wash sales information under the Cost tab for open and close adjustments.

Wash Sales Disallowance Tracking Fields

The following table lists fields used to track the disallowance on the initial open and close lots and to describe the origin of the disallowance for the lot that receives the disallowance. 

Tag

Field

Description

Tag

Field

Description

Wash Sales Object

 

 

3995

Washsales Converted indicator

Indicates at the position level whether wash sale adjustments have been converted from the Cost object to the ESTAR database for processing. Converted positions receive a value of Y.

Order Number

 

 

1092

Order Number

Specifies the order number of the transaction, including the same number for multiple lots.

4529

Cls Open Order Number

Specifies the open order number used to determine the lot eligibility for loss disallowance.

Open Level Disallowance Tracking

 

 

3847

Orig Washsale Disallowance L

Specifies the original disallowed loss of a wash sale transaction, local currency.

3848

Orig Washsale Disallowance B

Specifies the original disallowed loss of a wash sale transaction, base currency.

3849

Current Washsale Disallowance L

Specifies the current disallowed loss of a wash sale transaction, local currency.

3850

Current Washsale Disallowance B

Specifies the current disallowed loss of a wash sale transaction, base currency.

3851

Washsale Disallowance Term

Indicates whether a short term (ST) or long term (LT) close is washed.

Close Level Disallowed Loss Reversal Tracking

 

 

3882

Wash Sale Disallowance Reversal L

Specifies the wash sale disallowance for the reversal, local currency.

3883

Wash Sale Disallowance Reversal B

Specifies the wash sale disallowance for the reversal, base currency.

Additional Details

 

 

3861

Washsale Cls Trd Ticket Number

Specifies the trade ticket ID of the sell generating the disallowed loss.

3862

Washsale Orig Open Evt Id

Specifies the event ID of the lot sold prior to a wash sale.

3863

Washsale Cls Trade Dt

Specifies the trade date of the sell generating the disallowed loss.

3864

Washsale Orig Acq Date

Specifies the acquisition date of the sold lot creating the loss prior to a wash sale.

3865

Washsale Close Quantity

Specifies the total units of the original close lot for the wash sale.

3866

Washsale Disallowance Type

Specifies the transaction type triggering the wash sale.

3867

Washsale Reversal Type

Specifies the transaction type reversing the disallowance for the wash sale.

3988

Washsale Open Hldg Per Dt

Specifies the adjusted holding period of the sold lot creating the original disallowance.

4911

Washsale Cls Security Alias

Specifies the security alias of the close security in a wash sale transaction.

4912

Washsale Open Security Alias

Specifies the security alias of the open security in a wash sale transaction.

4916

Washsale Open Lot Flag

Indicates whether the target open lot is identified on the transaction or if the system should generate it.

4917

Washsale Cls Event Id

Specifies the Event ID of the close that generated the loss prior to a disallowance.

4919

Washsale Cls Event Type

Specifies the event type of the close event creating the loss being disallowed.

4920

Washsale Cls Post Dt

Specifies the post date of the close event creating the loss being disallowed.

4921

Washsale Cls Acct Dt

Specifies the accounting date of the close event creating the loss being disallowed.

4922

Washsale Cls Monthly Acct Dt

Specifies the monthly accounting date of the close event creating the loss being disallowed.

4923

Total Open Quantity

Specifies the total trade quantity of the open event that inherits disallowance (prior to any fracture).

4924

Total Close Quantity

Specifies the total trade quantity of a close trade (sum of all disposal lots created by a close).

4925

Washsale Orig Open Trd Ticket Num

Specifies the trade ticket number of the lot sold prior to a wash sale transaction.

4946

Washsale Manual Evt Type

Specifies the event type of a manual wash sale adjustment.

4998

Washsale Total Cls Loss B

Specifies the value stored on the open lot to represent the total lot level base loss of the close being relieved.

4999

Washsale Total Cls Loss L

Specifies the value stored on the open lot to represent the total lot level local loss of the close being relieved.

5000

Washsale Open Quantity

Represents the total wash eligible quantity on the open lot at the time of a wash sale.

5018

Washsale Trade Ticket Number

Specifies the trade ticket number of the transaction that caused the wash sale.

Update Disallowance Values for an Open Lot

You can use the Non Financial Trade Data Modification panel in the Book Trade tool to manually update existing open lots with disallowance values for wash sales. You can update disallowance values for tax/audit reporting purposes when you have open lots that received cost adjustments but do not properly reflect the disallowance. You may need to update the disallowance for an open lot manually as part of an Eagle conversion or upgrade. Disallowance fields for wash sales are also available in the Conversion and the Receive trade panels.

To update an open lot with a disallowance value:

  1. In the Accounting Center, in the left navigation pane, click Transactions > Trades > Book Trade/Rebook Trade > Book Trade.
    You see the Book Trade workspace.

  2. Complete the options in the Search Details pane and click Search.
    You see the search results based on the criteria you selected.

  3. Select the row with the security you want to trade.

  4. On the Book Trade tab, in the Actions group, click Action Rules, point to Other, and click Non Financial Trade Data Modification.
    You see the Non Financial Trade Data Modification panel.

  5. In the Select Lot to be Modified field, select the open lot you want to modify.
    The lot you select must contain wash sale eligible open quantity and no disallowance. Lots that are closed or already contain disallowances are ineligible for this type of manual update. After you select an open lot, you can modify two fields In the Update Wash Sale Disallowance Fields section of the panel.

  6. Click the Current Washsale Disallowance Local field, and update the current disallowed loss of a wash sale transaction, local currency.

  7. Click the Current Washsale Disallowance Base field, and update the current disallowed loss of a wash sale transaction, base currency.

  8. Click Submit.

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