Cost Basis in Orion

Setup Overview

After your custodial feed is set up, Orion reviews your data to verify the correct custodial files are downloading and applying to your database and that we are receiving adequate cost basis information from the custodian. The next step in the Cost Basis Onboarding process is to ensure your firm understands the received data, how to interpret and review it, and what to expect in correcting data.

Orion's Cost Basis Data Sources

Before you can start reviewing your cost basis data, you need to understand how Orion calculates cost basis for your reports. There are two different calculation methods: Custodian Stored and Orion Stored. Please reference the FAQ below for details about these options:

Reporting Cost Basis

Dictate which stored data source displays on a report by following the steps outlined below.   Instructions are included for both our current and legacy report builder, depending on which version your firm currently uses.

Report Builder

First, set up your general cost basis settings for reports in the Report Settings section of the Reporting App. See the Article: Report Settings - Creating Default Settings for all your Reports.

Cost Basis and Gain Loss information is shown in Report Builder through the use of Data Tags in a Sub-Report. Sub-Reports are small self-contained report components that present information primarily as Tables and Charts. Data Tags are the individual pieces of information in each table, for example, and you will see them in most sub-reports. 

There is a pre-built Standard Sub-report that you can add to your custom reports named Gain Loss Detail. It includes columns showing both Cost Basis and Gain Loss information.

To learn how to customize this or any Sub-Report further, review the How to Create Sub-Reports with Sub-Report Builder article.

If you have any questions or would like help with adding and customizing Cost Basis and/or Gain Loss information to a custom report, please reach out to the SME Reporting team.

Additional Information

Review the Cost Basis Data Provided by Custodians article to discover which custodians provide cost basis data and the frequency at which they provide it.

Orion also provides a tool called Orion Gap Fill, which fills in missing Custodian Realized and Unrealized records until they are sent from the custodian. This tool looks at transaction data, buys and sells, and your unrealized data to place temporary records on your Custodian Stored table. For example, if a sell is made on a Fidelity account, where realized cost basis files are only received monthly, Orion Gap Fill will see the sell transaction, compare it to the unrealized tax lots, and place a realized record on the Custodian Stored table until the new Fidelity file is received and replaces the Orion Gap Fill record. 

Auditing and Reviewing Cost Basis Information

Once you have gained an understanding of where to view cost basis information and where each download source comes into play for your accounts, begin the auditing and reviewing process.

The best way to audit and review cost basis information in Orion is by using the Tax Center app. This app allows you to verify that custodian cost basis files are being received as expected, and it also includes several helpful Tax Lot Audits in the Additional Audits section of the left sidebar menu.

You can also utilize the Orion Queries app to review and audit cost basis data. Below is a list of helpful queries that you will want to use as a part of your review.

Unrealized Data Queries

Query ID 11695: "Unrealized Gain Loss By Lot" - Displays Unrealized, Lot Level Gain Loss Information.

Query ID 12360: "Unrealized Gain Loss By Asset" - Displays Unrealized, Asset Level Gain Loss Information.

Query ID 14999: "Unrealized Gain Loss By Account" - Displays Unrealized, Account Level Gain Loss Information. 

Realized Data Queries

Query ID 11521: "Realized Gain Loss By Lot" - Displays Realized, Lot Level Gain Loss Information.

Query ID 15016: "Realized Gain Loss By Asset" - Displays Realized, Asset Level Gain Loss Information.

Query ID 15020: "Realized Gain Loss By Account" - Displays Realized, Account Level Gain Loss Information.

Action Items

To ensure your tax reporting is accurate, it is best practice to complete the following audits on a consistent basis.

Daily Task

Review the Interfaces Tab. This is a simple process that takes less than 5 minutes to complete that will make sure Orion has received files for each of your download sources at the expected frequency. Review Cost Basis Data Provided by Custodians for details on the frequency that files are received. If you notice something that needs a correction, contact the SME Cost Basis & Corporate Actions team, and they will assist you.  For more information about this section, please review the Interfaces section of the Tax Center App Overview article. 

Monthly Tasks

Make Updates in the Tax Lot Audits. Orion is able to identify instances where custodial cost basis information is missing. Understanding how to update this information can save you in a pinch. You can also use this section to identify where the custodian needs to send us information. Be proactive about having them send this data, as it will save you time down the road. Please see the following article, How to Audit Tax Lots in the Tax Center App, for information on auditing your tax lots.  

Review Cost Basis Overrides. Manually maintaining cost basis information can take a lot of time, but if you keep up on it monthly, it can make monthly/quarterly/yearly report running go a lot smoother. We have streamlined the process by identifying where you need to add overrides.  For more information, review the Cost Basis Overrides Overview article.