Description

SoftLedger’s flexibility allows for transactions to be tracked and accounted for in a variety of ways within the platform.  This article will specifically address accounting for derivative transactions using SoftLedger’s custom coin functionality.

Crypto Derivative Transactions 

Regardless of the type of crypto transaction, SoftLedger enables you to record and account for that transaction within the crypto module. The best way to accomplish accounting for derivative transactions  is through the use of SoftLedger’s custom coin functionality, where each derivative or options contract has its own custom coin. 

To create a custom coin to represent a derivative contract, navigate to the coins tab and select “New” and then select “Custom” within the Type field. The Symbol should represent the contract and is typically a combination of the contract name, date, etc. 

Once you have set up your derivative contract as a custom coin, a transaction will be recorded within the Transactions tab as a deposit, withdrawal or trade. For example, when you enter a position using USD, that is considered a deposit in SoftLedger, and a deposit transaction would be created in the transactions tab. Later, when you exit that position, a withdrawal transaction will be created.  The screenshot below illustrates both the deposit and withdrawal transactions associated with the derivative identified in the coin field.

The difference between the new higher or lower value at the time of exiting the position from when it was originally entered into will be automatically booked to realized gains or losses. 

An example of the resulting journal:

Input Fields

Each crypto transaction type (e.g. deposit) will have varying input fields based on the nature of the transaction. You can see more about the input fields for each of those transactions in their associated articles:

• Deposits
• Withdrawal
• Transfer
• Trade

Contact support for more details and guidance regarding crypto derivative (or other more advanced) transactions.