Correcting zero prices and the consequences

[BillWild]

Hi, Mark

When setting up a new portfolio for a very simple account from Scottrade, I notice via the Data Register that the purchase price is zero on some issues. This was the case whether I had sold or still hold the stock. Initially, the cash amount is fine because that's what is d/l'ed from the broker. A manual download of the transaction log showed all transactions correctly so I'm not sure where the zeros came from. After correcting the zero amounts, the cash is naturally out of whack. Aside from creating a bogus cash transaction to offset the corrections, is there a way to prevent this from happening?

Bill

[Mark]

Hi Bill,

When you use the New Portfolio Wizard and ask to retrieve Transactions and Positions, FM will get all available transactions, plus make any necessary adjustments to get your current balances correct. These will account for any transactions that were made earlier than your broker offered in the transaction download. These adjustment entries will be purchases at a price of 0, since the purchase price is unknown. The memo will also state that it was an adjustment entry to obtain the retrieved balance.

You are correct, if you go edit these while you have a default cash account assigned, this will affect your cash. You can either temporarily turn off the default cash account feature, or make a corresponding adjustment entry to account for all the changes you made.

[BillWild]

When you use the New Portfolio Wizard and ask to retrieve Transactions and Positions, FM will get all available transactions, plus make any necessary adjustments to get your current balances correct. These will account for any transactions that were made earlier than your broker offered in the transaction download.

This I understand; it's what happened a lot on my much older and screwed up TDAmeritrade account. This account is only a year and a half old and every transaction, including prices, etc. is accurately reported in the transaction.csv file. For some reason, the first four stocks retrieved during the portfolio setup, and were the first four stocks purchased, are all shown with zero prices.

...if you go edit these while you have a default cash account assigned, this will affect your cash. You can either temporarily turn off the default cash account feature, or make a corresponding adjustment entry to account for all the changes you made.

That makes sense, but I'm not sure how to turn it on and off outside the Wizard. Also, I set the default cash to "none" when setting up but it still shows a cash account.
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In that annoying account I have with TDAmeritrade, there are two money markets, MMDA1 and MMDA10. Over the years, interest has come from both. Is there a way to steer these transactions all into, say, "cash" or does this require manual intervention from time to time?

Thanks,
Bill

[Mark]

Hi Bill,

How exactly did you set up this account? You mentioned a .csv file, but that method isn't an option when using the New Portfolio Wizard. To use a .csv file, you have to use "File / Import / Transactions / Generic...". Did you maybe use the Portfolio Wizard to set it up partially, and then import the .csv file? If you have a .csv file, just create a sub-portfolio, and then import into that. No need to use the Portfolio Wizard when importing a .csv file...

Every investment that has a unique CUSIP needs to be left as a separate investment, so you can reconcile. You can make one of your MMDA investments the default cash if appropriate. If you're not longer getting transactions in those, you can also hide them.

[BillWild]

Mark,
No, the portfolio creation was through the Portfolio Wizard, like so:

Set up acct username and pw
Retrieved transactions and positions
Set "cash" as default cash acct
Yes to Retrieve Prices
Review stocks (ok)
Yes to retrieve prices (not historical)

At this point, a check of the Data Register showed a zero price on the first four stocks I bought. I then downloaded the transaction.csv file to see what that showed. It showed those four stocks and the actual price. (No importing, just "looking".)

Bill

[Mark]

Hi Bill,

I see... So, using the Portfolio Wizard can bring in $0 purchases if it has to make an adjustment to obtain the retrieved balance. (See the memo on those transactions to be sure.) That means those transactions were not actually available through their OFX interface. Just because you can download historical transactions into a CSV file from their website, does not mean those same transactions are available through their OFX server. They are 2 different servers, and can have different history available. I believe with TD, they only keep 1 year of history on their OFX server. They may keep longer on their web server...

Afterwards, you can manually edit those adjustment entries, keeping in mind the effects of cash you will be making.

To edit the default cash account setting, look at the properties of the sub-portfolio.

[BillWild]

I believe with TD, they only keep 1 year of history on their OFX server. They may keep longer on their web server...

Ok, that explains it. I'm dealing with two brokers, TDA and Scottrade, but the same likely applies to both. TDA actually goes back to '97 for .csv downloads but apparently only 2 yrs for OFX. Scottrade, it appears, goes back only 1.5 for OFX, which neatly trimmed off those first four stocks.

I think I'm finally getting the picture. Thanks for your help.

Bill