Handling cash disbursals

[tedzo]

When stocks are sold and cash disbursed from the account, how is that represented? What values should I use for TRAN and SYMB? (I am using the generic import function)

Thanks for your time.

[Mark]

Hi tedzo,

You would record a sell in the stock investment. The TRAN code for a sell is:

SELL

and you would use the symbol of the stock. If you are not using a default cash account, or if you do not check the option during the preview of your importing transactions to 'automatically record corresponding entries in your default cash account' then your proceeds from the sell will not be deposited into any cash investment. This is what you would do if the proceeds are sent to you in cash.

[tedzo]

Thanks for the response.

I am using a default cash account. So, what do I do? I was thinking of recording another SELL transaction for symbol CASH for the same amount. Does that sound right?

Thanks.

[Mark]

Hi tedzo,

Yes, recording a sell out of your cash would accomplish this.

[Dann]

Hi Mark,
How to record broker margin interest charges. Interest charges billed every end of the month and it is not possible to trace which investment this charges from 'coz it is for the whole account.
I have tried to record as investment expenses and its ok and cash account balance reduced, but when i record it in cash account as expenses, cash balance didn't reduce.

Dann

[Mark]

Hi Dann,

This would be recorded as a negative interest income distribution. If your cash account balance reduced in order to pay this interest, then record it as "Reinvested". This will reduce your number of owned shares. When you record it as a "distributed" distribution, this doesn't reduce your shares, it is like you sent in a check to pay for the interest.