Re: Accounting Fees

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In Reply to: Re: Accounting Fees posted by Mark on April 04, 2000 at 21:52:48:

: : : : I'm not sure of the correct method to enter the following transaction and end up with the correct adjusted cost base:
: : : : This is a first time purchase of this no-load mutual fund.
: : : : It has a one-time account opening fee of $40.00
: : : : Total investment, including one-time fee is $5000.00
: : : : Share price $15.79
: : : : Total shares received 314.1229

: : : : Please comment.

: : : : Regards,
: : : : Clive

: : : Hi Clive,
: : : You could choose to enter this account fee as a commission fee on
: : : this initial purchase, or you could enter it as a separate transaction.

: : : case 1:
: : : buy transaction for 314.1229 shares at 15.79 for $4960, and a commission fee of $40.

: : : case 2:
: : : buy transaction for 314.1229 shares at 15.79 for $4960.
: : : and
: : : account fee transaction (non-reinvested) for -$40.

: : :
: : : Either case will be accurate, and give you the correct cost basis.
: : : Note the rounding errors here, you should record the value/shares accurately,
: : : and let the share price "float". See "Recording Transactions Without Rounding
: : : Errors" in the online help.

: : : Thanks,
: : : Mark
: : : --
: : : Mark Beiley
: : :
: : : Fund Manager for Windows 3.1x/95/98/NT
: : :
: : :

: : Hi Mark,

: : I tried both of your suggested methods, however I get different cost basis values.

: : Case 1: I get a cost basis of $5,000

: : Case 2: I get a cost basis of $4,960

: : I think the correct cost basis calculation is $5,000 which includes the accounting fee. But for some reason the case 2 method does not include the accounting fee in the cost basis calculation.

: : Please comment on this.

: : Best regards,
: : Clive

: Hi Clive,
: Actually, you've pointed out a bug. Normally, account fees are added
: into your cost basis. With this bug, an account fee recorded on
: the same date as your very first investment, is not accounted for in the
: basis. We will fix this in the next release. You can use case 1 above
: for now. You can experiment with case 2, by putting the account fee for
: 1 or more days later than the original investment.

: Thanks,
: Mark
: --
: Mark Beiley
:
: Fund Manager for Windows 3.1x/95/98/NT
:
:

Hi Mark,

Thanks for the reply.

I've also come across another small bug in Fund Manager 4.6.218 with the Price/Transactions Memo field. The problem occurs when adding new re-invested distributions but leaving the Memo field blank initially. When I come back to edit this transaction by adding a comment to the Memo field, then viewing the Price/Transaction display in Data Type: Investments mode, the newly added comment is not visible. But if you change the data mode to Distributions, the comment is visible.

For product enhancement, I'd really like to see the following feature enhancements:

* Autobackup to also include *.MM4 portfolio files.
* Add to customized, available options:
ROI yields for 2 & 4 year periods
Simple returns (not annualized) for 1, 3, 6 month return periods
(I'm begging you for this one!!)

Best regards as always,
Clive

Replies:

• Re: Accounting Fees Mark 08:46:17 04/06/00 (1)
  • Re: Accounting Fees Clive 14:28:26 04/06/00 (0)