Unit Trusts assistance development

Dale Alspach alspachde at gmail.com
Sun Sep 17 16:30:12 EDT 2017


See if this does what you want. I know nothing about unit trusts except
what you have written in your emails.

Create a top level account named Unit Trusts as an Asset in ZAR. Either by
using the Opening Balance tab or by creating an initial transaction, credit
Opening Balance (equity) and debit Unit Trusts using the total value of the
sub-accounts. Next create your 5 sub-accounts of Unit Trusts as mutual
funds. You will need to create securities for each. For each sub-account
create an initial transaction, e.g., Description: Opening Shares , Credit
(Transfer): Unit Trusts, Shares: 6659.22, Price: blank, Buy: 149546.01.
Gnucash will compute a price of 22.457 ZAR. After you have created the 5
initial transactions the balance in Unit Trusts will be zero. The aggregate
value of Unit Trusts will be the sum of the values of the sub-accounts
using the security unit price (usually from the Price Editor).

Dale

On Sun, Sep 17, 2017 at 2:27 PM, Hylton Conacher (ZR1HPC) <
hylton at conacher.co.za> wrote:

> 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
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