Best way to record MM Interest

[Ivan]

Hi again Mark. I'm recording a monthly dividend to a money market account. What is the best Data Type to use for this? Reinvestments, Dividends and Interest Income all look like they would fit. Is any one of them more appropriate?

Thanks,
Ivan

[Mark]

Hi Ivan,

This would be a reinvested interest income type of distribution. Record a distribution, check the "Reinvested" option, record at a price of $1, and the shares equal to the value of the interest earned. Select "Interest Income" as the type of distribution.

Money markets and cash investments use a price of $1, and the shares equals the value. After recording a reinvested distribution as described above you will now own that many more shares, so the value of your money market will increase by the amount of interest earned.

In the data register, the "Distributions (all)" displays all types of distributions. Dividends and Interest are just 2 of the distribution types available.