Re: Muliple currencies & bank accounts per share

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In Reply to: Re: Muliple currencies & bank accounts per share posted by Paul King on January 26, 2006 at 05:42:20:

Hi - to elaborate further with an example - a share purchased & sold in one curency can only recieve its dividends (& be taxed) in another currency.

I need to ensure that a report from combined master portfolio containing shares & dividends from all currencies does not show the wrong number of shares held or the wrong actual cash flow amounts to/from each account, for tax accounting purposes

Also, need to ensure than when this holding is sold, that the second subportfolio required to handle recieving dividends also automatically knows that shareholding is sold - even when sale proceeds go to first subportfolio currency

... aarrrggghh!!

The minute I start "fudging" holdings or accounts, I risk confusing myself or my accountant when reviwing the data a year later when attempting to prepare accounts & reconcile every transaction reported by FundManager with real transactions showing on bank statements.

Currently feels like just too much to go wrong with this kind of workaround

Does this all make sense?

Cheers

: Hi - using multiple versions of same investment a good idea except that it makes bank reconciliation even tougher

: The ultimate scenario would, in effect have accounting/cashbook funtionality, whereby the transactions of a finacial entity are mapped to several accounts (and where software manages an single asset schedule that is not mapped to any given account):

: A many to many database relationship rather than one to one i guess (?)

: Also features relating to picking up acrrual of purchases, dividends & redemption from one tax year to next would be useful - eg helping detect & schedule cases when date dividend cheques are recieved are in the tax year following tax year they were issued etc.

: Would probably require fundamental structural change to current software, but
: I am wondering if it would fill a big potential demand out there?

: THere is nothing else that can do this as far as I know and surely I am not the only one who struggles to collate tax accounting data each year for accountant?
: Would there be any value in polling your users to guage interest, required features & willingness to pay extra for the extra functionality?

: Cheers

: Paul

: : : Hi- my main problem is when a share conducts transactions in more than one currency, and where it uses more than one account (in reality). No breakdown or amount of organisation of sub portfolios will address or simulate this as far as I can see.

: : :
: : : My aim is for each bank accounts' balance to be reconciled (compared to real world account balance) after each transaction - so I can't "fudge" things by converting to an equivalent amount in a different currency, or pretending that dividends are credited to same account share was purcased with (My accountant would kill me!)

: : :
: : : On second issue, the Investment Transactions report does not provide a running cash balance total (i.e equivalent to the amount that should appear in bank statement immediatly following that particular transaction). It would be very helpful to step through a report line by line, correlating each transaction with bank statement, finding where running total on report differs from equivalent on statement - in order to work out what data is missing or incorrectly entered.

: : :
: : : To introduce a third issue - I cannot seem to exclude hidden investments (eg bank accounts) from totals appearing at bottom in custom reports listing redemptions or purchases. I would have to keep removing such investments from portfolio altogether every time I want to generate a non-hidden investment total. Am I missing something here?

: :
: : Hi Paul,

: : If you are trading the same security in multiple currencies, and multiple accounts you would probably want to create a new investment for each currency, and also for each account. A given investment file can only be tracked in a single currency, but you can have multiple investments for the same ticker symbol if you need to.

: : On the third issue, hidden investments are still always included in the overall portfolio totals. Hidden investments just don't have a report line item for themselves. They're often used in the case of investments that you no longer own. This way their historical values are still included in portfolio figures, but your current reports don't get cluttered up with sold off investments.

: : Thanks,
: : Mark
: : --
: : Mark Beiley
: : Fund Manager, portfolio management software for Windows 95/98/ME/NT/00/XP/2003
: :

Replies:

• Re: Muliple currencies & bank accounts per share Mark 09:55:25 01/26/06 (3)
  • Re: Muliple currencies & bank accounts per share Paul King 16:35:08 01/26/06 (2)
    • Re: Muliple currencies & bank accounts per share Mark 16:54:49 01/26/06 (1)
      • Re: Muliple currencies & bank accounts per share Paul king 16:46:12 02/01/06 (0)