Year End Mutual Fund Dividends - Simulating Receivables for Personal Account

[Suresh Bazaj]

I am trying to figure out how to enter year end Dividends that are accrued
on the last day of a year but deposited into the account on second (T+2)
business day of the new year.

 

The 1099-Div includes this as income in the prior year though the money is
deposited in the Brokerage Money Market account in the new year.

 

Creating Receivables account type for the few onetime transactions at the
beginning of each year seems like an overkill.

 

So, I created a sub-account named "Receivable" under Assets (Top Level
Parent Account) and a sub-account "Receivable Opening Balance" under Equity.

 

I then made an entry for each Dividend amount using Transfer Type Equity:
Receivable Opening Balance.

 

I then made a second entry on the day the Dividend was posted/deposited in
the Brokerage Money Market account. For this I used Transfer Type Assets:
Brokerage Money Market Checking.

 

This seems to work. The Receivables subaccount under Assets is now Zero and
the Dividends are in Brokerage Money Market Checking Accounts under Assets.

 

The Receivable Opening Balance under Equity continues to show the total of
all such Dividends.

 

Am I on the right track?

 

It will be pretty painful, if I have to change all this after I have entered
rest of the transactions (few hundred) for rest of the year.

 

Thanks,

 

Suresh