[GNC] recording reinvested earnings

[arctostaphylos]

Dividend reinvestment is a purchase of shares. The dividend amount is income
at least as far as the tax man is usually concerned. As a practical matter,
using a broker's dividend reinvestment program, in my personal (cash, not
accrual) books, I ignore all the monkey motion (the broker reveals how and
when the cash moves and the shares get bought and settled), and record it as
a dividend amount (income) and purchase of the asset (the reinvestment) with
it. Ordinarily, both of those happen on the same business day. If the
reinvestment is delayed across the end of an accounting period, the cash
moves (dividend -> cash or sweep account -> purchase shares) might have to
be recognized because the brokerage cash or sweep account will temporarily
be bigger by the amount of the dividend. 

Mutual funds generally don't show you all the cash manipulation. They just
show on your statement or a trade confirmation that as of date X you
reinvested $some_dividend_amount in some (usually fractional) number of
shares. 

Mike B


GnuCash - User mailing list wrote
> I have been going through that and working through most of the questions 
> I have had to date.
> BTW Chapter 9 is about investments and I have that pretty much under 
> control. I have even been able to semi automate the updating of my 
> security prices with out having to go through Alpha Vantage or what ever 
> it's called.
> 
> On 3/30/21 10:56 PM, David Carlson wrote:
>> Read the tutorial and Concepts guide, paying close attention to Chapter 9
>> and particularly to <
>> https://www.gnucash.org/viewdoc.phtml?rev=4&lang=C&doc=guide>
>>
>> On Tue, Mar 30, 2021 at 9:46 PM Peter Parsons <

> parsonspg@

> > wrote:
>>
>>> Is there a convenient way of recording dividend/interest income that is
>>> reinvested in additional securities?    ( I could, of course, record an
>>> imputed income-in transaction offset by an investment-out transaction)
>>> Thanks
>>> Peter Parsons
>>>
>>> Sent from Mail<https://go.microsoft.com/fwlink/?LinkId=550986> for
>>> Windows 10
>>>
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>>
> 
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> - Anonymous
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