Table of Contents
1. What is "Automatically Generated Sale/Purchase of Crypto Fee from Previous Transaction"?
3. Why Transaction Fees are Sold
1. What is "Automatically Generated Sale/Purchase of Crypto Fee from Previous Transaction"?
This refers to transactions automatically generated when transaction fees are paid in cryptocurrency. This is not an error, and there is no action required on your part.
2. Handling of Fees
- If the fee currency is the same as the user's reporting currency (*), the fee amount specified in the transaction is used. If the fee currency is not the same as the user's reporting currency, we will convert the fee amount with a rate obtained from our sources detailed in 4. Fiat currency exchange rates.
(*) What is reporting currency? -- This is the currency that will be used to denominate all profit/loss values and price translations in your ledger. You can change it from the Ledger settings screen.
- Transaction fees in cryptocurrency: We will use the same logic dictated in "2. Calculating cryptocurrency prices" to convert the fee to the user's reporting currency to reduce the PNL when processing a CLOSE transaction. The following steps are taken to correctly reflect the fee into the PNL when processing a CLOSE transaction.
| Fee currency | Open transaction for the Base (*) | Close transaction for the Base (*) |
|
Same as Base |
Pattern-A |
Pattern-C |
|
Same as Counter |
Pattern-C |
Pattern-B |
|
Neither Base or Counter |
Pattern-A |
Pattern-C |
(*) What are Open/Close transactions? -- 1.1. How to determine open vs close
Pattern-A:
- The reporting currency equivalent of the fee is incorporated into the book price of the Base.
- A SELL transaction for the fee currency at the market price is auto-generated, and this generates a PNL. (*)
Pattern-B:
- The reporting currency equivalent of the fee is incorporated into the book price of the Counter.
- A SELL transaction for the fee currency at the market price is auto-generated, and this generates a PNL. (*)
Patter-C:
- The PNL of the transaction is reduced by the reporting currency equivalent of the fee.
- A SELL transaction for the fee currency at the market price is auto-generated, and this generates a PNL. (*)
If you specify a fee in cryptocurrency for Action="LOSS" or Action="BONUS" with zero cost, the fee amount is also processed as a loss. The overall PNL should be the same.
3. Why Transaction Fees are sold
For example, when purchasing ETH using BTC and paying a transaction fee with 1 BNB, if the fee is equivalent to 1000 yen in Japanese yen, the 1000 yen fee is included in the acquisition cost of ETH (as mentioned above in ①).
However, if your average acquisition cost of BNB is 100 yen, a profit of 900 yen would be recognized here. To account for this, a sell history of 1 BNB at the market value is automatically generated. This transaction is displayed as a type of "sale of fee currency" (as mentioned above in ②).
Additionally, the automatically generated "sale of fee currency" history is not counted as a transaction. Therefore, generating a fee payment history will not require a plan upgrade.