Transfer IN and Transfer Out vs. Transfer between wizard

[michael]

Hi Mark,

We transferred securities from one broker to another. The transaction retrieval import generated Transfer IN and Transfer Out transactions in both accounts. I deleted these transactions and manually entered the transfers using "transfer between" wizard for each security so that the basis and OOP basis carried over. Is this the easiest way to deal with the imported transfer transactions? Thanks,

Michael

[michael]

Mark,

I used the Transfer Between Wizard and chose Accounting method Spec Lot. After doing the transfer I went into Investment data and selected the lots related to the transfer.


I ran an open lots report for the destination source investment and it shows one lot that is different than the lot I specified after using the transfer between wizard.

When I specified the transfer I chose FIFO and then unchecked one of the lots on the right side of the dialog box and checked a different lot instead. (most of the lots transferred were the ones FIFO selected, except for this one lot).

The open lots report for the investment in the destination source doesn't show the lot I specified, it shows the one originally selected by the system.

I also reset the Selected Redemption Operations in the Specify Lots dialog box and manually chose each lot and entered the # of shares too.

But no luck.

Hope that makes sense.

Michael





For the investment in each subportfolio I chose specified lots in the investment properties dialog under the other tab.

Thanks,

Michael

[Mark]

Hi Michael,

Yes, the Transfer Between wizard is good to use in this case.

Did you use the "Assigned Accounting Method" or "Specified Lot" option when creating your "Open Lots" report? You can create that report for any accounting method, so if you chose FIFO, it will calculate with FIFO.

I'm guessing the problem is with the Transfer In transactions though, not your specification of the transferred out shares. Please note, when you use the transfer between wizard, and you choose the "Specified Lots" method, this is only used to determine which shares are available for transferring. Of all the open shares at the time of transfer, the shares will be transferred out using a FIFO method. This is from the online help topic of the transfer between wizard:

Accounting Method:
The accounting method to use when determining which shares are transferred from the "Source" investment. The accounting method determines which shares have already been sold. Un-sold shares are transferred out using a first in first out method. The transferred out shares determine the tax cost basis value and date and also the out of pocket (OOP) cost for the transferred in shares. The total transferred out tax and OOP basis is equal to the total transferred in tax and OOP basis.

So, the transfer between wizard is really best used for transferring either all shares, or transferring using FIFO of the open shares at the time of transfer. If you don't want to do this, record your transfer out and ins manually. You'll have one transfer out, and a transfer in for each lot you want transferred. If you want to just modify the existing transfers, edit the transfer in transactions, and you'll see the cost basis date/amount, which were set by the transfer between wizard, based off FIFO. You can edit this here.