Inventory and payroll

[Phillip Shelton]

Umm, you lost me here. Selling shares `costs'? Don't I sell the shares for
the going rate of $5.02 and thus make about a dollar on each share minus the
commission and any rounding errors? ie I debit(?) the brocker account and
credit my equity? while at the same time noting that I now have less
shares????

John Hasler writes:
 > Phillip Shelton writes:
 > > Ok, do you mind trying to tell me what is a better, more correct thing
 > > gnucash should be doing?
 >
 > The cost of a securities purchase is the amount of money you paid your
 > broker.  This not generally equal to price times number of shares: it
 > includes commissions, rounding "errors", etc.
 >

Correct, as I understand things.  Additionally, when you sell shares,
for calculating the "cost" of the sold shares, you need to know
exactly what shares you have sold (did you sell the ones you bought in
January at $3.95, or the ones you bought in February at $4.88).
GnuCash is not yet set up to record this kind of thing.  The new file
format will provide the infrastructure to do so.

------------------------------------------------------------
Robert Merkel	                           rgmerk@mira.net

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