share purchase cost base error

BobBob Member Posts: 3
Hi I am currently using Reckon Personal Plus 2016. I have been using this and earlier versions for over ten years so am not a novice. Recently I entered a new share purchase as per normal however after I entered the data and returned to the Investment -- Holdings -- Overview page I see an incorrect cost base recorded. I have reviewed the data entered in Transactions and it is correct. Also when I click on the Security and go to Detail View I see the correct transaction information. However when I return to the summary page which lists all the equities, I see that this holding has the incorrect cost base listed. I have reviewed the share price history to ensure that no anomalous prices have been recorded but the data is correct. I have deleted the purchase and re-entered and the problem recurs. I have also re-entered with new data (! share for 1 dollar) and again the cost base is way out. I would very much appreciate any assistance. Thanks, Bob

Comments

  • Lesley XerriLesley Xerri Member Posts: 44
    edited July 2017
    Hi Bob, 
    The cost base correctly includes commissions in its' calculation.  Could you do a manual calculation - including commissions and see if you have a matching figure? If so, all is good!
  • John CampbellJohn Campbell Member Posts: 218 ✭✭
    edited February 2017

    Bob,

    Without disclosing personal information, would it be possible to provide more details of the error, so we can get a better understanding of the magnitude of the incorrect report ?

    Eg date of transaction, number of shares, purchase price etc, then latest share price and date. Then provide the summary report values.

    John

  • BobBob Member Posts: 3
    edited November 2016
    Thanks for your response Lesley and John. I have included the commissions when entering my total cost as I usually do so there is no problem there. The exact transaction is entered as follows: 18th Nov 2016 Bought 12,000 NXT for a total of $36,779.90 The Investing -- Overview -- Holding summary states: 12,000 NXT held with a cost base of $18,056.94 and market value of $37,320 (as of 22 Nov 2016) Bob
  • John CampbellJohn Campbell Member Posts: 218 ✭✭
    edited February 2017

    Bob,

    I assume you are looking at the Investing : Portfolio value screen.

    There are a number of different Show: options. Are they all consistently showing this error ?

    Your info indicates RPP estimates a purchase price of about $1.50 and a market price of $3.11.

    Could it be RPP assumes purchased 24,000 shares, (purchase 12,000 and add 12,000) then removed 12,000, ie your correction transactions are causing the duplicate.

    Security detail view should list all transactions.

  • BobBob Member Posts: 3
    edited November 2016
    Yes both Show options show the same error. There are no duplicate transactions in the Transaction List. Only the one. Also, I just tried a dummy sell transaction to see if the correct gain was recorded. When I clicked "Sell all Shares in this Account" It automatically entered 9,500 units not the correct 12,000. I have owned this stock in the past but last sold all units in May 2016.
  • John CampbellJohn Campbell Member Posts: 218 ✭✭
    edited February 2017

    "It automatically entered 9,500 units not the correct 12,000"

    I am a bit confused, but certainly the source of this problem is a good place to start.

  • redtaxonomyredtaxonomy Member Posts: 2

    I have had this cost bas error many times over the 15 years I have used various versions for this program with multiple files and thousands of transactions. Some of the cost base errors can be resolved by refreshing a transaction e.g. the very first transaction, some can be resolved by deleting and re-entering certain transactions, one has to try and pick the timing of the offending transactions. It is common to find when a stock has been sold down to a zero balance there is a residual negative cost base when one runs the portfolio value and cost report. There are crazy entries in the Capital Gains records as a result, resulting in an over estimation of capital gains. I have analyzed some of these for hours, reported the bug to Reckon 10 years back but no response. I am convinced there is a bug somewhere in the background programs and that is why I am moving my high volume portfolios to another platform, as the hours I chew up correcting these cost base errors could buy 5 alternative packages. And yes, I make sure buys are entered before sells to avoid selling shares that are not their in Reckon to be sold. Pity as the software has some good features,

  • John CampbellJohn Campbell Member Posts: 218 ✭✭

    The number of shares reported is a bit surprising as number of shares is a key report for most screens. You would have seen this for years.

    The way RPP manages change to the capital base could be a problem, especilly when deleting sell transactions.

    I would suggest you try to export all transactions for this account and this security and carefully understand and recreate the capital calculations for all sales. Could it have carried capital from previous sales, especially if RPP has an incorrect estimate of your zero share holding event.

  • redtaxonomyredtaxonomy Member Posts: 2

    Thanks for the suggestion John. In some cases we are talking scores of transactions per security so that is one painstaking task for recovery, but not prevention of recurrence.

  • Barrie MeadowsBarrie Meadows Member Posts: 1

    Having read these comments it would appear that changing the cost basis for shares cannot occur.My experience is that the cost basis error only occurs when part of a share portfolio is sold and then further purchases and sales occur.Also the system does not account for the situation where no cost is involved as a result of an overall profit from selling part of the portfolio and still retaining shares. As an example buy 10000 shares @ say $1 (total cost $10000, sell 5000 of those shares at say $3 (proceed received $15000) The remaining shares in effect cost nothing.Any suggestions anyone.

  • John CampbellJohn Campbell Member Posts: 218 ✭✭

    Barrie,

    If you purchase say 10,000 @ $1 then sell 6,000 shares @ $3, this should result in removal of 6,000 shares and $6,000 of capital base + $12,000 of capital gain, with $4,000 remaining capital base.

    If the purchase history is more complex, you have the ability to select which (purchase) lots are allocated for the sale, which identifies the capital base allocated to the sale.

    Managing the capital base becomes more complex if a return of capital occurs, especially where multiple lots are purchased. I have forgotten how RPP handles this transaction, but this could be the source of the problem. This occurred for me with RPP when Singtel restructured many years ago. The capital return exceeded the capital base and I had a negative capital base remaining. ( I can't recall how I entered the return of capital)

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