[GNC] Entering Dividend Confusion

[David Cousens]

TIA

For a franked dividend where the net dividend amount is $x and the franking
credit is $y, the transaction recording it will be generally of the form

Asset:Bank account     Dr $x
Asset:Franking Credits Dr $y
Income:Acme:Dividends        Cr $x+$y

https://www.ato.gov.au/individuals/investments-and-assets/in-detail/investing-in-shares/refunding-franking-credits---individuals/

For a dividend reinvestment the ATO advises  that the dividend is treated first
as income as above and then the net dividend $x is used to purchase n new shares
at a price $x/n.

https://www.ato.gov.au/Individuals/Capital-gains-tax/Shares-and-similar-investments/Dividend-reinvestment-plans/

The Franking credits are a rebate against tax payable on your income and an
individual is generally entitled to a refund of the difference if their franking
credit amount exceeds their tax payable and that is normally done in your
individual tax return. At that point you need  a credit to the Franking Credit
account to zero it out with corresponding entries reducing the tax paid and tor
the tax refund. Companies can turn excess franking credits into a loss carried
forward in most cases (there are rules applying to this).

David Cousens

On Sat, 2023-01-21 at 23:06 +1030, xboxboy.mageia+GnuCash wrote:
> Thanks: That changes the column names when I attempt to enter 
> information by the looks, but I am going in circles here: Stuck in MYOB 
> mode I suspect.
> 
> I'm going to need my hand held I think.
> 
> My income tree looks like this
> 
> Income--->Dividends--->Specific Company Name Dividends----->Franked 
> Dividend (ie 30% tax paid)
> 
> ------>Input credit (ie. the 30% tax paid above)
> 
> So I'm having trouble even just entering that :( What complicates it is 
> that it is reinvested, so I don't receive a cash payment as such.
> 
> 
> That said, years ago I seem to have had my head wrapped around at least 
> the dividend payment, looking at some old transactions, what I see is a 
> split transaction that looks like this: (for example)
> 
>              Acme Dividend                    $127.31 (Tot income)
>              Franked income (Assets:current assets: Bank CD: Smart 
> Access) $89.12 (charge)
>              Input Credit (expenses: Taxes: Franking Credits) $38.19 
> (charge)
>              Acme Dividend (Income: Dividend Income: Acme Dividend 
> Income) $127.31 (income)
> 
> Does that appear correct?
> 
> I've spent weeks trying things, and I am wild with myself that I just 
> can't drop back into it.
> 
> TIA
> 
> On 21/1/23 19:38, David T. wrote:
> > Try using Transaction Journal view mode.
> > 
> > Use separate income accounts for Taxed and Untaxed dividends.
> > 
> > 
> > David T.
> > On Jan 21, 2023, at 11:15, Gnucash Xboxboy Mageia 
> > <xboxboy.mageia+gnucash at gmail.com> wrote:
> > 
> >     Hi all,
> > 
> >     I'm trying to enter dividends, I'm following this video
> >     https://www.youtube.com/watch?v=WRNoabz1WSo  but his page shows columns
> >     with shares/price/debt/credit, but mine has just buy/sell any ideas? How
> > do
> >     I get those columns?
> > 
> >     I'm in Australia, so I wanted to enter dividend payments as 3 types:
> >     Taxed (franked), Untaxed (unfranked) and the Tax credit (input credit),
> >     and I reinvest the dividends typically.
> > 
> >     Thanks: All advice welcomed.
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