[GNC] Transferring mutual funds

[AC]

Answering two at once:

Fred: No I did not work in split view. I was just working at the single 
account level.

David: Are you saying I need to instruct GnuCash to treat the transfer 
as a sale even though there was no sale thus no realized gains/losses 
and no actual change in the cost basis?

On 2023-07-05 10:07, David Carlson wrote:
> AC,
> 
> Fred implied, but didn't elaborate on the point that the shares in the
> original brokerage account had a cost basis that was incurred when they
> were purchased.  When you transfer them out, that is equivalent to a sale
> or closing transaction, and the cost basis should be adjusted accordingly,
> even though there were no funds involved.  Of course, that exact cost basis
> needs to be added to the receiving account as if the shares were purchased
> at the original price.  This used to be described in great detail in one of
> the help manuals, including the somewhat tricky procedure to enter realized
> gains when an actual sale happens but I haven't checked lately to see if
> those parts are still there.  I know that if you do not do those things and
> later run a trial balance or if you use the Investment Portfolio report,
> you will quickly see the error of your ways.
> 
> 
> 
> On Wed, Jul 5, 2023 at 11:33 AM Fred Bone <Fred at mandfb.me.uk> wrote:
> 
>> On 04 July 2023 at 16:29, AC said:
>>
>>> I recently moved some mutual funds from one brokerage to another. The
>>> process did not involve a sale, it was just a transfer of control from
>> the
>>> old to the new.
>>>
>>> In my current books I keep mutual funds listed as subaccount under each
>>> brokerage as such with their respective security/currency:
>>>
>>> Investments
>>> -Brokerage 1 (currency)
>>> --Fund A (security A)
>>> --Fund B (security B)
>>> -Brokerage 2 (currency)
>>> --Fund A (security A)
>>> --Fund C (security C)
>>> --Fund D (security D)
>>>
>>> I wanted to expand this to add the new brokerage and then perform a
>>> transfer of the funds from one to the other. Let's assume I moved the
>>> funds under Brokerage 1 to Brokerage 3. So the tree would look like the
>>> simplified version below (leaving out Brokerage 2 as it is unaffected):
>>>
>>> Investments
>>> -Brokerage 1 (currency)
>>> --Fund A (security A)
>>> --Fund B (security B)
>>> -Brokerage 3 (currency)
>>> --Fund A (security A)
>>> --Fund B (security B)
>>>
>>> The securities are the same because it's the same original mutual funds,
>>> just moved to another brokerage. The tree would be left intact with the
>>> funds under Brokerage 1 being zeroed out and the funds under Brokerage 3
>>> starting off with the incoming values.
>>>
>>> My natural tendency was to create a transfer directly within Brokerage 1
>>> Fund A that moved all the shares over to Brokerage 3 Fund A but that
>>> didn't create the transaction I expected.
>>>
>>> By example, I transferred Fund A on July 1 which contained 10 shares at
>>> the price of the shares on that day. So in Brokerage 1 I entered -10
>>> shares with a total sell price of X as listed on the statement from
>>> Brokerage 1. The price is autocalculated and the balance correctly goes
>> to
>>> zero.
>>>
>>> Looking inside the Brokerage 3 Fund A account I only see a transaction
>>> that has an amount in the buy column but no shares and a balance of zero.
>>> I can manually enter the same number of shares in that partially empty
>>> transaction but why was my thought about the transfer incorrect? Should
>> it
>>> have not transferred those shares over as well?
>>
>> Did you work in split view?
>>
>> I can replicate what I think you are saying if I don't enter the separate
>> splits.
>>
>> If I go about it the obvious way (in split view) and enter balancing
>> amounts then it all works.
>>
>> However, I'm still on 2.6.21 ...
>>
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> 
>