Advanced Portfolio Income (maybe Brokerage Fees too) incorrect in switch and multiple investments transactions

[Chris Good]

From: David T. [mailto:sunfish62 at yahoo.com] 
Sent: Sunday, 15 January 2017 9:47 PM
To: Chris Good <chris.good at ozemail.com.au>
Cc: Alberto Dante <alberto.dante at gmail.com>; gnucash-user at gnucash.org
Subject: Re: Advanced Portfolio Income (maybe Brokerage Fees too) incorrect in switch and multiple investments transactions

 

 

On Jan 14, 2017, at 12:37 PM, Chris Good <chris.good at ozemail.com.au <mailto:chris.good at ozemail.com.au> > wrote:

 

-----Original Message-----
From: David T. [mailto:sunfish62 at yahoo.com]
Sent: Saturday, 14 January 2017 3:59 PM
To: Chris Good <chris.good at ozemail.com.au <mailto:chris.good at ozemail.com.au> >
Cc: Alberto Dante <alberto.dante at gmail.com <mailto:alberto.dante at gmail.com> >; gnucash-user at gnucash.org <mailto:gnucash-user at gnucash.org> 
Subject: Re: Advanced Portfolio Income (maybe Brokerage Fees too)
incorrect in switch and multiple investments transactions





On Jan 14, 2017, at 4:29 AM, Chris Good <chris.good at ozemail.com.au <mailto:chris.good at ozemail.com.au> >

wrote:



 

You seem to be saying that ‘Money In’ should include cost of stock

acquired as part of the DRP but that is not what the APR does.




As per https://www.gnucash.org/docs/v2.6/C/gnucash-help/report-

classes.html#report-assets :




Money In: Sum of the cost of stock purchased, excluding stock acquired as

part of a Dividend Reinvestment Plan. I.e. External money used to purchase
shares.

Chris, and others,

I know that I am dense when it comes to many things (and accounting is one
of them, for sure!), but it would seem to me that cost basis should include
shares purchased through a DRP. To my mind, a DRP simply combines two
transactions into one: 1) shares pay a dividend (income), and 2) dividend
buys stock. Shouldn’t that be figured into the basis? Or have I got that
completely wrong?

TIA,
David=


Hi David,

I don't have a preference for either way. I'm no expert on investments.

Regards, Chris Good

 

Chris,

 

Further digging around online suggests to me that DRP purchases should be included in the calculation of a stock’s basis. At least, that’s what it seems like from several investment websites I checked (e.g., www.fool.com <http://www.fool.com> , www.investopedia.com <http://www.investopedia.com> ). I’d be curious to know why such purchases aren’t included in basis calculations for the report.

 

David

 

Hi David,

 

Actually, the ‘Basis’ column also includes the cost of shares acquired by DRP, so the purpose of the ‘Money In’ column is to show the actual money excluding DRPs.

 

Regards, Chris Good

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