When recording investments/realizations, follow this guide for updated reporting / IRR calculations.
- New Investment: When investing in a new asset, post a new valuation transaction at cost.
- Follow-on Investment: When doing a follow-on investment in an existing asset, post a fresh valuation transaction to account for the additional investment.
- Revaluations: To account for movement in fair value, post a valuation transaction to update unrealized gain/loss.
- Partial realization: When partially realizing an asset, post a new valuation transaction to update unrealized gain/loss for the remaining investment.
- Complete Exit: After booking a complete exit from an asset, post a valuation transaction with the amount as 0.
Valuations should be posted in chronological order to correctly calculate unrealised gains/losses based on historical cost and valuation transactions. (If you create/modify a historical cost or valuation, you would need to re-save future valuations post that date)