Unit Trusts assistance development

[Hylton Conacher (ZR1HPC)]

HI David,



On 12/09/2017 20:08, D wrote:
> Hylton,
> 
<SNIP>

> I don't understand how this is different from a mutual fund or stock. 
> Each has 'units' which have some currency value, e.g.,$5 a share.
> 
>>Each transaction is actually measured in currency as there is a
>  >price per unit which must be paid or received.
> 
> Again, I don't see the difference. In my example above, if I bought 10 
> shares, I would have a transaction for $50, I would own 10 such shares, 
> that wouldbe worth $50.

John, whilst I respect your contribution i.t.o. development of GnuCash, 
I feel you certainly need to take a refresher course in customer 
service. For your information, I am well versed in accounting having 
completed the subject top of my class at high school and consequently 
also completed 1st yr university accounting where I am fully aware that 
Assets-Liabilities=Owners Equity yet Gnucash does not seem to follow 
GAAP(Generally Accepted Accounting Practice) rules. Personal attack 
noted and put aside as it does nothing to help the GnuCash product. 
Unfortunately we both made assumptions and all it did was make an ASS of 
U + ME.

My issue is related to the fact that I cannot create the account opening 
balances as at 31/08 from my paper statement which shows both the price, 
the number of units held and the closing market ZAR value of the units 
held in that particular unit trust asset.

Using either a Mutual fund or Stock, did not allow me to correctly show 
the opening ZAR value of my unit trusts. When I open a new account as a 
mutual fund, it mistakenly marks the ZAR value of this asset as 
negative. According to John a course in basic accounting would fix this, 
however nowhere have I ever seen an asset marked as a negative currency 
value.

Should I try and open a new account as a stock, the tab on the new 
account windows indicating Opening Balance' is greyed out, just as it is 
on a Mutual Fund?

I basically need to add a Current Asset called Unit Trusts which totals 
the ZAR value of its sub accounts, of which there will be five named 
AG-Bal, AG-E, AG-MM, AG-O, Cor-Balp each with an opening balance on the 
31/08/2017 consisting of number of units to 4 decimal places, a unit 
price in cents to 2 decimal places/(ZAR to 4 decimal places) and a 
closing market value, in ZAR to 2 decimal places, which depending on the 
fund may/may not be the product of units x price i.e. the closing market 
value.

THIS IS THE CRUNCH:
THE OPENING BALANCE ZAR VALUE OR THE CLOSING MARKET VALUE ON THE 
PREVIOUS DAY MAY/MAY NOT BE THE PRODUCT OF UNITS OWNED X PRICE

A single account on my paper statement shows:

Units: 6659.22
Unit Price(cents): 2245.70
Closing Market Value: ZAR 149546.01

I am hopeful, once I can get the Opening Balances completed, that I will 
then be able to figure out how transaction will be entered correctly so 
at least my assets don't show up as a negative.

Thankfully transactions seemingly follow the unit x price in ZAR cents = 
ZAR value added/withdrawn from fund.

>  If there is anyone else
>  >who actually uses Gnucash for South African unit trusts, I would be most
>  >pleased to hear from you.

> I'd like to point out to you that John is one of the primary developers 
> for Gnucash; his knowledge about how it works, and how it is intended to 
> work, are pretty substantial. Thus far, you haven't shown that South 
> Africa's unit trusts are in fact different from a mutual fund. Perhaps 
> you could explain more clearly (with specific examples) how they are 
> different, and we could proceed under more civil circumstances?

I have indicated to John that I am thankful for the work he has done, 
and continues to offer, for the Gnucash project.  David, as per your 
request I hope the example above helps illustrate how a unit trust 
opening value needs to be entered so as to correctly indicate the ZAR 
value of the asset to the account holder.

Regards
Hylton