Mutual fund reinvestment option

[Tony Lill]

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On 05/23/2015 11:41 PM, John Ralls wrote:
> 
>> On May 23, 2015, at 6:18 PM, Divakar R. <divakar07 at dataone.in>
>> wrote:
>> 
>> How else should the transaction be recorded? As I understand, 600
>> comes in as income and 600 is added to the investment account.
>> Even if I enter a single line transaction in
>> Assets:Investments:Mutual Fund:Fund_A as
>> 
>> Transfer:Income:Mutual Fund:Fund_A Shares 18.296: Price 32.7941:
>> Buy 600,
>> 
>> the split looks as I have indicated in earlier mail.
>> 
>> I seem to be missing something here and am not able to get this
>> right.
> 
> You need four transactions, which you can do as one or two
> transactions at your pleasure, though if you’re using the Advanced
> Portfolio Report there are some subtleties that I don’t know about
> since I don’t use it.
> 
> The splits, when viewed in Assets:Investments:Mutual Fund:Fund_A,
> which should be of type FUND or STOCK: Shares	Price	  Buy	  Sell 
> Income:Mutual Fund:Fund_A		  				   600 Assets:Brokerage
> Account:Cash					  600 Assets:Brokerage Account:Cash						   600 
> Assets:Investments:Mutual Fund:Fund_A     	18.296	32.7941	  600
> 
> I usually record these as two transactions, one for the dividend
> and one for the repurchase.

The way I do it, and I'm sure I got these instructions in the gnucash
docs somewhere, is to treat is the same as a stock purchase, except to
use an income account instead of a cash account for the funds.

My splits looks like:

					Shares	Price	  Buy	  Sell
Assets:Investments:Mutual Fund:Fund_A   18.296	32.7941	  600
Trading:CURRENCY:CAD                                      600
Income:Mutual Fund:Fund_A                                         600
Trading:EXCHANGE:Fund_A                -18.296  32.7941           600

Income goes up and the stock count goes up, so all is good, I hope!
Not sure where the Trading accounts come from, it's something gnucash
adds.
- -- 
Tony Lill, OCT,                       ajlill at AJLC.Waterloo.ON.CA
President, A. J. Lill Consultants                 (519) 650 0660
539 Grand Valley Dr., Cambridge, Ont. N3H 2S2     (519) 241 2461
- --------------- http://www.ajlc.waterloo.on.ca/ ----------------


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