Preference - Transactions

Unique transaction type code that separates it from other transaction types.

Short name for the transaction type, which is used in the reports as the abbreviation of the transaction type. Transaction's short name can be translated into different languages, while the transaction type's type code is used to identify the transaction types within the system and cannot be translated.

Name of the transaction type.

Choose from No effect, Adds cash, or Reduces cash. The cash effect describes the effect the transaction has on the cash balance of the account linked to the transaction. For example, a "Buy" transaction reduces cash, and a "Sell" adds cash in the portfolio's account by the trade amount of the transaction.

Choose from No effect, Add or Reduce. The net effect affects the transaction's net cash flow to the portfolio. If there is no net cash flow on the transaction, then any effect the transaction has on the market value of the portfolio will affect the portfolio's performance (TWR). The net effect would counter these effects otherwise. The net effect works differently depending on the transaction type's cash effect: when the transaction doesn't have a cash effect, then the net cash flow is directly dependent on the net effect and the transaction's trade amount (for example, "Add" transaction type has the net effect "add" => positive net cash flow, and "Remove" transaction type has the net effect "reduce" => negative net cash flow). However, if the transaction also has a cash effect, the net cash flow of the transaction is the combination of the cash and net effects: "add" cash and net effects => positive net cash flow; "add" cash but "reduce" net effect => negative net cash flow; "reduce" cash but "add" net effect => negative net cash flow; "reduce" cash and net effects => positive net cash flow. For example, "Withdrawal" transaction type has the cash effect of "reduce" and the net effect "add", which results in a negative net cash flow effect.

Choose from No effect, Adds amount, or Reduces amount. The amount effect describes the effect of the transaction's amount (i.e. units) on the amount of the security in the portfolio. For example, a "Buy" transaction adds the amount, and a "Sell" reduces the amount of a position by the amount of the transaction.

Choose from No effect, Add, Reduce, or Reduce all. FIFO describes whether the FIFO valuation method is taken into account. "No effect" means that the valuation method is not taken into account. "Add" means that the transaction is "in" and adds the amount of the security. "Reduce" means that the transaction is "out" and reduces the amount of the security. "Reduce all" means that the transaction is "out" and reduces the amount of each purchase lot proportionally.

Choose from No effect, Adds return (profit) or Reduces return (cost). The return effect describes the effect of the transaction on the portfolio return. For example, a "Dividend" transaction adds return. From FA 3.9 onward, the return effect determines whether a transaction is a profit (adds return) or a cost (reduces return). This allows you to explicitly control "Other profits" and "Other costs" in TWR calculation. For example, a "Dividend" transaction adds return and is considered as "Other profits". In addition, you can control for example where you want to see the effect of kickbacks - even with positive cashflow, you can configure your kickbacks to reduce return (a cost), when kickbacks would increase your (negative) costs instead of reducing your (positive) returns.

Choose from No effect, Realize profits/losses, Realize profits/losses by closing open positions, or Realize profit indirectly. The profit effect defines, whether the transaction realizes profits - Realize profits/losses calculates realized profits from the transaction, such as sell, and shows it as “realized profit” and as “capital gain” for taxation purposes, while Realize profits/losses indirectly calculates realized profits from the transaction, and shows it only as “realized profit” but not as "capital gain". For example, a "Sell" transaction realizes profits (shown as realized profits from the performance point of view and as capital gains for taxation purposes), while a "Remove" transaction realizes profits indirectly (shown as realized profit from the performance point of view but not as capital gains on tax reports). From FA 3.9 onward, the effect "Realize profits/losses" works on its own, independent of other effects. This allows you to realize profits also when your position’s units don’t change, not only when buying or selling.

Choose the purchase price effect from the alternatives. Purchase price effect allows you to adjust your position's purchase price directly with your transaction's trade amount, even when your transaction doesn't have an amount effect. For example, transactions such as "capital return", "value adjustments" at year-end, and "mark-to-market" for futures' handling often have a purchase price effect, only affecting your position's purchase value. For example "buy" and "sell" transactions don't have a separate purchase price effect since they affect the position through the amount effect.

Choose from No effect, Unrealized profit, or Realizes negative purchase lots. Only available when transaction type has a “Purchase unit price effect”. Controls whether adding or reducing purchase price affects unrealized profits. This allows you to control TWR calculation: Value adjustments for accounting purposes don't change “original” purchase value and thus don’t affect TWR, while capital returns change purchase value from TWR’s point of view. (Available from FA 3.9 onward)

Сhoose from No effect, Adds market value, or Reduces market value. Market value effect allows you to adjust your position's market value directly with your transaction's trade amount. This is useful if you don't get daily market prices on your securities, and want to instead adjust the market value of your position directly with transactions, for example for "Private Equity" and "real estate" investments. If you feed market prices for your security, transactions with market value effect have no effect on your position.

Сhoose a cost category group for your transaction from Portfolio (investment service costs), Security (product costs) or 3rd (third party payments). Within each group, select a further cost category from the next field.

Сhoose a cost category for your transaction from Not categorized (default), One-off charges, On-going charges, Charges related to transactions, Charges related to ancillary services or Incidental charges, or from up to five additional Other cost categories. The cost category of a cost transaction is utilized in ex-post cost analysis: when a category is set to a cost transaction, the trade amount of such a transaction is summed into the selected cost category. For example, you can categorize your asset management fees as Ongoing charges, when the trade amount of your asset management fee transaction is considered as ongoing charges in ex-post cost reporting.

Сhoose from Effect on position on transaction date to Effect on position on settlement date. The date effect allows you to decide whether your transaction affects your portfolio's positions on the defined effective transaction date (booked date if defined, otherwise transaction date) or on the defined settlement date. By default, transactions have an effect on position on transaction date, but changing the effect on position on settlement date is especially useful for example when the effect of a deposit or withdrawal should not be shown on your bank account before the settlement date, allowing you to directly track the settled, actual available cash within your portfolio. If you configure your transactions to take effect on the settlement date, the transaction will affect all calculations, including positions, profits, and other analyses, only from the settlement date onward.

Choose from No effect or Relative effect on amount and unit price. The ratio effect defines whether the Ratio field of the Transaction window is available (no effect -> field not in use), and what kind of an effect the value in the field has on the security's amount and unit price.

Security 2 defines if the transaction type has another security in addition to the security chosen in the transaction. Second security is involved, for example, in case of exchange transactions or call and put option transactions.

Сhoose from the following options:

Сhoose No, Yes - same, or Yes - opposite. Grouping defines, whether the transactions of the transaction type are grouped to a separate position, and do the transactions affect the same or opposite position.

Сhoose No effect, Adds trade amount, or Reduces trade amount. The tax effect relates to the upper tax field in the Transaction window (tax from trade amount). The tax effect describes the effect of the tax on the final trade amount.

Сhoose No effect, Adds trade amount, or Reduces trade amount. The tax 2 effect relates to the lower tax field in the Transaction window (tax from fees). The tax effect describes the effect of the tax on the final trade amount.

Сhoose No effect, Adds trade amount, or Reduces trade amount. The cost effect describes the effect of the cost on the final trade amount.

Сhoose No effect, Adds trade amount, or Reduces trade amount. The cost effect describes the effect of the cost on the final trade amount.

Choose No effect, Adds paid in capital, or Reduces paid in capital. Defines how the transaction affects paid-in capital value visible in Analytics+. The paid-in capital is calculated based on transactions trade amount excluding taxes. If the commitment type is “amount”, the paid-in capital is calculated based on the transaction’s amount. (Available from FA 3.9 onward)

Сhoose No effect, Adds commitment, or Reduces commitment. Defines how the transaction affects the total commitment of a position. The remaining commitment is then determined by subtracting paid in capital from the total commitment. For example, private equity transaction type "PE - Commit" increases commitment to a position.

Сhoose Not defined, Price, or Amount. Defines whether the commitment is calculated based on transaction's amount (i.e. units) or price (i.e. amount x unit price). Mandatory to be selected (Price or Amount) if the transaction has a "Commitment effect". (Available from FA 3.9 onward)

Сhoose No effect, Adds distribution, or Reduces distribution. Defines how the transaction affects distribution visible in Analytics+. The distribution is calculated based on transactions trade amount excluding taxes. (Available from FA 3.9 onward)

Opens the Translations window for translating the transaction type, allowing you to save translations for the transaction type to be used in reports and the user interface when a language other than the language of the transaction type is chosen.

Updates the changes made to the transaction type to all the transactions of the updated type. The trade amounts and cash flows of the transactions in all portfolios are re-calculated to take into account the changes made to transaction types, and the affected reports are re-calculated.

Opens the Versions window to allow you to follow the changes made to the information.

By default, neither of these confirmation messages is enabled: you can set the system to ask one or both of the confirmation messages from the check box. The purpose of these confirmation messages is to make sure that a transaction does not by mistake make the account balance or the amount of the security in the portfolio negative. When a transaction is saved, the system confirms the action with a Yes/No pop-up window, if the total value of the transaction exceeds the account balance, or the amount of a security exceeds the amount of the security in the portfolio.

Enable or disable setting the settlement date automatically. When enabled, whenever you enter a transaction date, the settlement date is automatically set a certain number of business days from the transaction date.

Define how many business days ahead the settlement date is set from the transaction date. You can override this on the security level: if the "Enable settlement date" has been enabled for the transaction's security (or cash transaction's currency's), the number of days defined in "Settlement date" is used to calculate the settlement date for trades in that security. In addition to how many business days trades take to settle, the transaction's security's (or cash transaction's currency's) holiday calendar is used to determine which days are business days.

Enable or disable setting the settlement date automatically. When enabled, whenever you enter a transaction date, the settlement date is automatically set a certain number of business days from the transaction date.

Define, how many business days ahead the settlement date is set from the transaction date. You can override this on the security level: if the "Enable settlement date" has been enabled for the transaction's security (or cash transaction's currency's), the number of days defined in "Settlement date" is used to calculate the settlement date for trades in that security. In addition to how many business days trades take to settle, the transaction's security's (or cash transaction's currency's) holiday calendar is used to determine which days are business days.

By enabling this setting, the original purchase value is used in the portfolio reports by default for transactions with original transaction information defined. By default, this setting is not enabled, and the portfolio reports use the transaction purchase value - however, if original transaction information is defined for a transaction, this information can be set to be shown on the reports by default. No matter which price is used by default, you can always change this selection when creating reports.

By enabling this setting, deleting a transaction or a trade order is disabled, i.e. the Delete button in the Transaction or Trade order window is greyed out, and you cannot delete transactions or trade orders manually from the system through the corresponding window. In addition, when enabled, transactions with the status "Deleted" cannot be modified by anyone other than ADMIN users. See also Permissions for usage for preventing deleting transactions for a certain user role with permissions.

Enable the trade order statuses you want to be able to utilize in your trade order flows. The available trade order statuses include Open, Accepted, Executable, Sent to execution, In execution, Partially executed in the market, Executed in the market, Settled in the market, Executed, Cancelled, Rejected, and Expired. The statuses Open and Executed are always selected, since they are utilized by the system in different functions - the other statuses are free for you to choose from, depending on the trade order life cycle you want to maintain.