Understanding Transaction Settings

Table of Contents

Display Settings

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Accruals

Accrual transactions are end-of-day summary transactions created by NODE40 Balance based on activity in your ledgers. These transactions are generally created daily and represent accrued interest, rewards, or debt as issued by some DeFi protocols and blockchains.

Precision

NODE40 Balance uses precision valuations, up to eight decimal places. By default we only show this level of precision for very small values. You may choose to display full precision on all transactions.

• Normal - Shows only two decimal places

  • Full - Shows up to eight decimal places

  • Max - Shows up to eighteen decimal places

Customizing Columns Shown

From both the Timeline tab and the Ledgers tab, the Columns shown can be customized by accessing the menu on the top right:

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Advanced Transaction Options

NODE40 enables the user to modify certain settings, add manual transactions and override valuations. Other options to modify data include:

Marking as a Transfer

(ex: if an outgoing transaction is a user-owned wallet that NODE40 does not have visibility of.)

There are several reasons a user may need to manually change a transaction from a disposition to a transfer. This document will explain both scenarios.

• Scenario #1 - Transfer Status - Mark this transaction as a transfer.

• Scenario #2 - Manually Link Transfer - Include two transactions as part of a transfer.

Modifying Incoming/Outgoing Values

Expand any transaction and valuation can be modified if desired. This can also be done by hovering on the value and clicking the pen/paper icon to bring up the edit box. There is also section to indicate notes or a reason, for transparency and audit trail purposes.

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Marking transactions as Exempt From Income

Toggling this button to/from Mark as Income/Mark as Exempt this will exempt or include this transaction as income (as seen above).

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Adding Manual Transactions

Manual transactions can be added to any ledger by selecting +Manual Entry within the ledger. Fill in as much information as you can and click save. Manual transactions can be deleted, but they cannot be modified.

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Changing Accounting Strategy

NODE40 allows users to upload their crypto transactions using 4 different accounting strategies:
FIFO - Default setting "FIFO" stands for first-in, first-out, meaning that the oldest received digital currency is recorded as sent first.

HIFO - The HIFO method sells the highest cost assets before others. When choosing this method, if you acquired assets throughout the year at various amounts, your tax obligation may be lower when you dispose of the assets. Over time, as you dispose of the highest-cost assets, taxes will be owed on the lower values assets.

LIFO - "LIFO" stands for last-in, first-out, meaning that the most received digital currency is recorded as sent first.

LOFO - The Lowest Cost, First Out method sells the lowest cost assets before others. When choosing this method, if you acquired assets throughout the year at various amounts, your tax obligation may be higher when you dispose of the assets. Over time, as you dispose of the lowest-cost assets, taxes will be owed on the higher values assets.