default behavior of mutual fund accounts

Dale Alspach alspach@math.okstate.edu
Thu, 26 Jul 2001 19:24:57 -0500


I am wondering whether the default behavior for mutual fund accounts could
be changed to something more realistic. If I buy shares of a mutual fund,
the fund tells me how many (fractional) shares I bought and at what price
and the cost. Any roundings are devoured. The numbers they report to me
are the same numbers that the IRS is going to get. So any calculation
I do better use those exact numbers. Under Gnucash one of the three:
shares, price per share or value is usually not going to agree with
what the mutual fund says. Generally I end up allowing the price to be
inconsistent since the shares and value (cost) have to be right for later
calculation. This isn't quite satisfactory because a partial sale will
use the purchase price per share (as reported by the mutual fund  or an
average price if there are multiple purchases) to calculate the basis.

It seems to me that the only way to make this work is to allow an
inconsistency and not just a few cents in an imbalance because the rounding
of the price to the correct number of digits is important.

Dale Alspach