The "Out Of Pocket" (OOP) calculation method reports figures based on how much money has come out of your pocket. These figures are useful in understanding your overall break even point. The OOP figures may differ from the various tax related calculation methods due to distributions. For example, when you reinvest a distribution you tax cost basis in that investment increases, but your OOP cost basis stays the same, since you didn't receive any money back into your pocket.
Your OOP cost basis is the amount of money spent on purchases out of your pocket (not including reinvested distribution), minus any redemptions, and minus any received distributed distributions. There are a variety of OOP related figures available, such as OOP basis, OOP gain, and OOP percent gain. This calculation method is used in the "Cost" based graphs, the custom and portfolio performance reports, as well as the Portfolio Editor. When determining the OOP cost on only remaining shares, the FIFO accounting method is used.
Special Note for Transfer In/Out Transactions: When calculating the out of pocket cost for "transfer" type transactions there are two calculation options. You can either use the original OOP cost of the transferred shares, or the market value on the date of the transfer. This option can be set in the General Preferences - Other Dialog.