Capital return how to process

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  • Updated 5 months ago
I had a capital return during the tax year and have tried to process it a number of ways but its still not working correctly.  I want to increase the bank account balance as it was funds received but reduce the cost base of the investment.   The capital return option I have chosen keeps on increasing both the bank account and asset cost.  Even with a negative sign in front doesn't get the right result.  Does it need a 2 step process?  I can't find any history of answers on this despite it being a common corporate action. Someone might be able to point me to an earlier post with the answer.
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Leanne Veitch

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Posted 5 months ago

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Diver Dave

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Leanne, using the Capital of Return transaction is the correct way of recording a Return, but I don't understand why your Cost Base increases - it should decrease. 

Assuming you have a linked bank account the Return will be reflected in the account balance.

Are you sure the Cost reported has gone up? 
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Leanne Veitch

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Yes it both increased the bank account and came through as a positive figure on the investment record.  When I put a negative sign in front then the same thing happened so it seems Reckon doesn't do double entry book keeping very well.Are you able to provide a few screen shots (I know I am asking a lot) that I can check my settings against as perhaps the problem is the user!Thanks
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Diver Dave

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Leanne, it would be easier to respond directly, rather than via this portal.  I you e-mail me at david.stewart@optusnet.com.au I'll send you screen prints of a set of transactions.