Investment account transfers??

I posted a question months ago but did not get a response. In the meantime, I have narrowed down the problem area. It is when entering dividend reinvestments which go through to the portfolio but also show as a minus in that account cash balance. That balance is deducted from the value of the overall portfolio.

I must be doing something wrong when entering the information??

Thanks for your help, June Daley

Answers

  • David M
    David M Member Posts: 92

    I hope you are using the "Reinvest-Income Reinvested" dropdown window for the transaction, rather than recording the dividend receipt and the new investment.

    In the dropdown window you need to record [on the first line] the cash brought forward - being the cash retained by the company after the last reinvestment as no part shares are issued. Similarly, on the last line you need to record the cash remaining after the latest issue of shares. This last amount will appear in the account balance, but it should be a positive.

    Hope that helps

  • junedaley
    junedaley Member Posts: 7

    Hi David,

    Thanks for your comments. I am entering the dividend re-investments in the drop down window as you describe. What happens then is the amount of the new shares increases the minus balance in that account? The cash balance carried forward does not appear at all?? The new quantity and cost does transfer to info against the share.

    As I am using Commsec, I was able to give their information to the accountant at the end of the financial year instead of using mine!

    Regards, June Daley

  • David M
    David M Member Posts: 92

    Hi June

    This may be a silly question, but do you enter both the dividend and the reinvestment amount in the same window?

    I ask, because it sounds as if you only enter the reinvestment. You do need to enter both for thsi system to work!

    I.e. the Dividend provides the cash to pay for the new shares, and leave a positive cash balance for the small amount left over.

  • junedaley
    junedaley Member Posts: 7

    In the drop-down box, the top part is where the dividend information is entered and then at the bottom is the where the share quantity is entered and the cash balance to be carried forward.

    Hopefully I am in the right place?

  • David M
    David M Member Posts: 92

    Hi June

    You are correct in what you have said - the only omitted item is you need to start with the brought forward cash balance. This number will be on your Dividend Re-investment statement, and should reconcile to the cash balance in the Investment Account.

  • junedaley
    junedaley Member Posts: 7

    Hello again David,

    Thanks for taking the time with this. I do always list the brought forward balance from the last statement for that particular share. Sounds like I am doing things right but not getting the right result?

    Thanks for your help anyway.

    Regards,

    June

  • David M
    David M Member Posts: 92

    Happy to talk you through a transaction if you want.

    Something simple is obviously going wrong.

    David M

    0419 330 781

  • junedaley
    junedaley Member Posts: 7

    Hi David,

    If you happen to see this, I want to thank you for your help yesterday explaining how the dividend re-investments should work. Because of this, I seem to have found the problem and it is to do with ETF's. I have been entering the income from the beginning in the fund/trust category and now realise that this was not being processed and only the purchase of new units was going through. I deleted the last transaction and re-entered the income as unfranked dividend and it processed correctly.

    At some stage I will go back to the beginning of last financial year and process again.

    Regards, June Daley

  • David M
    David M Member Posts: 92

    Hi June

    I appreciate you coming back and sharing that the problem was solved and how.

    I did not know before that Trust Disteibutions did not work for re-investments. So, I too have learnt something, as have all the other readers. [RAV - something to fix?]

    Good luck going forward.

    Regards

    David