BHP pays an in specie dividend, how is this recorded in Personal Plus and Home?

Bill Grint

How do you record the payment of a fully franked dividend which is not paid in cash. I still need to capture the franked dividend and imputation credit for income and tax purposes; without impacting any cash accounts.

While the dividend is related to the BHP Petroleum / Woodside Energy merger and the issue of Woodside Energy shares to BHP shareholders, there is no direct correlation between the dividend value and the cost base of the new WDS shares.

I have recored the new WDS shares using "Add Shares" using the cost base price of $27.96 i.e. the ASX closing price the day prior to the dividend payment / WDS share issue (as advised by both BHP & Woodside).

Now, just need to record the non-cash dividend & imputation credit.

Bill Grint

Cost base is transposed, should be $29.76

John Ilott

I can't see how you would do the non-cash dividend and imputation credit. The only transaction that allows that issues more shares in the same company, in this case, BHP.

Bill Grint

I did no get a response from Reckon so I processed as follows (not sure if it is the "best" solution, however, achieves what I need):

I processed the dividend as a "normal" dividend, however, I allocated to an asset account I created instead of the usual bank account. The new asset account had the offset to the dividend income.

I then entered a "balance adjustment" transaction to change the asset account balance to "zero" on the same date as the dividend.

Therefore, I have the correct dividend income, imputation credit and no impact on the bank account. I have a correct balance sheet and the correct income / imputation credit when I run my income report.

I can always delete and use any better solution provided by Reckon support!

peterfin_8

How do you add the new shares into the portfolio without buying them?

John Ilott

I did something like Bill did. Processed the dividend as a franked dividend with imputation credit and allocated the income to my "securities" account, not a bank account. I then used the "Buy" function to purchase WDS at the price stated on the BHP dividend statement. When I "bought" the WDS shares I used the funds that I'd saved to the Securities account when I recorded the dividend.

Bill Grint

John, your solution works and is a little simplier than mine.

peterfin_8

Yes, John and Bill, I used John's trick: treated the dividend as a normal BHP income event transaction, then bought the Woodside shares from the dividend, leaving a hefty FC credit!

BFJSReckon

I did as John Ilott has done, but having thereby hidden the transaction from the usual bank account, it leaves open the question of how Reckon will show this as "income" when reconciling year end accounts. Would be nice to hear from Reckon or anyone who has figured this out!

peterfin_8

I used the Enter Transactions - Record an Income Event in the shares account to accept the dividend and then Bought the WDS shares at the valued price in a second transaction to convert the income to shares. No drama. Even Centrelink accepts it.