Account adjustment in portfolio

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  • Updated 3 weeks ago
I have recently closed a share portfolio which had a separate cash account.  The cash account balanced OK but am showing several hundred dollars in cash in the portfolio.  The account goes back to 1995 so is too hard to trace the problem and want to do an account adjustment to write the amount off.  There is nothing in the transaction drop-down list to support  this action and would like to know the best way to handle this without affecting other balances?  I am using PP 2018.
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Carljh

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Posted 3 weeks ago

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Chris Appleby

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You could do a cash transaction - Other transaction transfer the cash to "cash"
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Kel Luke

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Did you have any franking credits on this account?
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Diver Dave

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Carljh, the fact you have cash in the Investment Account despite having a Linked Account indicates an error in some transactions ie the Investment Account wasn't properly cleared.  Probably caused by only deleting a transaction partially at some point.

It also means your Portfolio Value has been incorrect as the Cash reported is the sum of cash in the Linked Account and the Investment Account.

It's not too hard to identify the offending transaction(s).  Check the Portfolio Cash against the Linked balance at various points in time - when they differ it indicates an incorrect transaction.  The other way to identify the problem Is to Use the Print Register on the Investment Account, for the full date range, then Preview (don't actually Print!) - Zoom in and scroll down Page by Page - the balance should always be Zero after each Transaction - Buy/Sell/Dividend etc.

Once the error is found, it'll probably be part of a deleted transaction.  Delete it from the Investment Registry.

Sounds a bit tedious but it's not that bad - can usually identify the offending entry/entries quite quickly.

If you don't want to go to that trouble, then the easiest way to rectify your problem is to enter a Miscellaneous Expense to wipe out the Cash balance in the Investment Account.  This will place cash in the Linked Account which can be eliminated with an "Adjustment" in the Linked Account.

This will fix your closing position, but won't rectify the fact the Portfolio Balance is wrong for past periods.
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Carljh

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Thanks very much for that.  As you say a very tedious task, especially as my math skills aren't the greatest and it is 23 years of transactions, but better to try to correct the mistake first.  The account adjustment would be the last resort. 
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Diver Dave

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Agree, Carljh.  Hopefully it won't be too hard to identify where the mistakes are - maybe work back by Years until you have agreement by Cash Balance and Portfolio, then work forward.  Doesn't require any math!  The mistake is lekely to be with a Dividend incorrectly deleted - they usually have 3 entries per Dividend in the Investment Register - balance as per Print Preview should return to zero after transfer of nett dividend amount to the Cash account - once you've worked out where the problem begins, scroll down looking for where it doesn't return to zero, which means money's been left in the Investment Register.

If you have any concerns e-mail me at david.stewart@optusnet.com.au - happy to help.