What is Crypto Cost Basis?

Created by Travis Lander, Modified on Tue, 17 Oct, 2023 at 10:24 PM by Travis Lander

Description

Cost Basis is a background process that calculates the cost basis and cost layers for all crypto transactions which involve a "Sent" coin and/or a "Fee" coin (trades, transfers and withdrawals). It is the cost basis process that is the first step in creating Journal Entries in your SoftLedger system, and when run fully can calculate your gains and losses on crypto transactions throughout the system. The Cost Basis function is triggered when clicking the Run Cost Basis button at the top of the Crypto Transactions screen:

 


How does it work?

If cost basis is currently running you will see a progress bar on the Crypto->Transactions page, similar to the following:

If cost basis has completed successfully you should see no progress or error message at the top of the Crypto Transaction List. In addition, all of your Trade/Transfer/Withdrawal transactions should have a value in the "Sent Cost Basis" and "Fee Cost Basis"(If they have a fee coin) columns.

In some cases you will find that the cost basis process has failed. In this case you will see an error notification at the top of the crypto transaction list:

This error should provide detailed information to assist resolving the cost basis error.

For detailed instructions of resolving typical cost basis errors see this article How do I resolve cost basis errors?

 

Managing Cost Basis

Cost basis warning
If you see this warning, and hover over it, it will notify you that cost basis may be inaccurate and needs to run.




Logic behind of Run Cost Basis - See Article

Cost Basis Errors

Canceled Error

You may come across an error that says "Canceled" as the reason for the error from the error box at the top of the transactions table. There are a few ways this error can be displayed:


  1. Some one clicks cancel cost basis or cancel build journals
  2. If cost basis is currently running and a user creates a new transaction(via API/Integration/Bulk Upload) and that newly added transaction's date is older than the date of the transaction that cost basis is currently calculating from (cost basis runs in order, oldest to newest)
  3. Same as #2, but for the building journals process

 

See the Immaterial Threshold Setting article to review how to automatically fix rounding errors involved with crypto transaction recording.

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select at least one of the reasons

Feedback sent

We appreciate your effort and will try to fix the article