Understood! Thank you for such a thorough explanation!

Last question; as income, this reports as negative... why?

On Tuesday, March 28, 2017 at 5:02:06 PM UTC-4, Jason Chu wrote:
>
> Close.
>
> PnL is an Income account, not an Asset.  The idea is you're selling the 
> inventory, extracting its original value during the sale and recording the 
> change in value in the PnL account.  The value that's being created comes 
> from the Income account.
>
> Remember that Income and Expense accounts only matter relative to some 
> date (you could ask questions like, "how much income did I have in 2016?"), 
> but Assets and Liabilities last forever (you wouldn't ask the question, 
> "how much assets did I have in 2016?", instead you would say, "what was my 
> balance (the sum of all transactions until a certain time) at the end of 
> 2016?").
>
> On Tue, Mar 28, 2017 at 1:53 PM Andrew Sail <[email protected] 
> <javascript:>> wrote:
>
>> If the value in the brackets represents my lot then shouldn't it be {200 
>> USD} since that's what I purchased at? With that, wouldn't the second line 
>> not balance because I'm actually selling 20 shares @ 205?
>>
>> Based on the documentation, I modified your suggestion to the following: 
>>
>> 2014-02-17 * "selling vghcx shares"
>>   Assets:Investments:Fidelity:Roth:VGHCX -20 VGHCX{200 USD} @ 205 USD 
>> Assets:Investments:Fidelity:Roth:Cash 4100 USD 
>> Assets:Investments:Fidelity:Roth:PnL
>>
>> This results in my PnL reporting as -100. Is this now the proper way to 
>> report PnL?
>>
>>
>> On Tuesday, March 28, 2017 at 4:11:40 PM UTC-4, Yuchen Ying wrote:
>>
>>> Ah right, you also need to book your profit/loss in a separate account. 
>>> Thanks Jason for catching that.
>>>
>>> A full example of the sell transaction with P/L:
>>>
>>> 2017-03-27 * "sell 20 shares of VGHCX"
>>>   Assets:Investments:Fidelity:Roth:VGHCX                  -20 VGHCX{205 
>>> USD}
>>>   Assets:Investments:Fidelity:Roth                        205 USD
>>>   Assets:Investments:Fidelity:Roth:PL                      -5 USD
>>>
>>>
>>> Do note that the {200 USD} notation is to specify your lot, If for some 
>>> reason you have two lot both with same acquire price, you'll need to add 
>>> date to disambiguate (something like {200 USD, 2017-01-01}). I believe this 
>>> is explained in the doc. 
>>>
>> On Tue, Mar 28, 2017 at 1:08 PM, Andrew Sail <[email protected]> wrote:
>>>
>> Thanks! That's really helpful. Could you modify yegle's example to 
>>>> include a PnL/CapitalGains account? Are you suggesting I return principal 
>>>> to cash but growth to a gains account on sale? If you could also clarify 
>>>> what you mean by {} ambiguous matching syntax, I would really appreciate 
>>>> it.
>>>>
>>>> On Tuesday, March 28, 2017 at 4:03:28 PM UTC-4, Jason Chu wrote:
>>>>>
>>>>> To better understand how inventories work, I highly recommend reading 
>>>>> http://furius.ca/beancount/doc/booking.  It explains why you have to 
>>>>> select lots at all and the various booking methods you probably want to 
>>>>> use.
>>>>>
>>>>> In addition, yegle's example is missing the PnL/CapitalGains account, 
>>>>> so you'll actually return the wrong amount to your Roth account.  The doc 
>>>>> explains why.
>>>>>
>>>>> I have converted nearly every one of my sales to using the {} 
>>>>> ambiguous matching syntax and I feel so much better for it.
>>>>>
>>>>> On Tue, Mar 28, 2017 at 12:08 PM yegle <[email protected]> wrote:
>>>>>
>>>>>> When you sell your holdings, you should specify which lot you want to 
>>>>>> sell in the curly bracket. In your case, you should write the following.
>>>>>>
>>>>>>
>>>>>>
>>>>>> 2017-03-27 * "sell 20 shares of VGHCX"
>>>>>>   Assets:Investments:Fidelity:Roth:VGHCX                  -20 
>>>>>> VGHCX{200 USD} @205 USD
>>>>>>   Assets:Investments:Fidelity:Roth
>>>>>>
>>>>>>
>>>>>> On Tue, Mar 28, 2017 at 12:04 PM, Andrew Sail <[email protected]> 
>>>>>> wrote:
>>>>>>
>>>>>>> I'm receiving a strange error when trying to sell shares of an 
>>>>>>> investment fund that I have previously purchased. Below is an example 
>>>>>>> from 
>>>>>>> my ledger, replaced with dummy data. In this example, I'm trying to buy 
>>>>>>> 20 
>>>>>>> shares of the fund at $200/each, funded from my main account, and then 
>>>>>>> sell 
>>>>>>> them at $205/each (the sale is obviously just for the sake of my 
>>>>>>> understanding of how to use the tool).
>>>>>>>
>>>>>>> 2017-01-01 * "buy 20 shares of VGHCX"
>>>>>>>   Assets:Investments:Fidelity:Roth:VGHCX                  20 
>>>>>>> VGHCX{200 USD}
>>>>>>>   Assets:Investments:Fidelity:Roth                       -4000 USD
>>>>>>>
>>>>>>> 2017-03-27 * "sell 20 shares of VGHCX"
>>>>>>>   Assets:Investments:Fidelity:Roth:VGHCX                  -20 
>>>>>>> VGHCX{205 USD}
>>>>>>>   Assets:Investments:Fidelity:Roth
>>>>>>>
>>>>>>> 2017-01-01 price VGHCX                              200.00 USD
>>>>>>> 2017-03-27 price VGHCX                              205.00 USD
>>>>>>>
>>>>>>> The error I receive is below.
>>>>>>>
>>>>>>> $ bean-check ledger.beancount 
>>>>>>> /path/to/ledger.beancount:74:      No position matches 
>>>>>>> "Posting(account='Assets:Investments:Fidelity:Roth:VGHCX', units=-20 
>>>>>>> VGHCX, 
>>>>>>> cost=CostSpec(number_per=Decimal('205.00'), number_total=None, 
>>>>>>> currency='USD', date=None, label=None, merge=False), price=None, 
>>>>>>> flag=None, 
>>>>>>> meta={'filename': '/path/to/ledger.beancount', 'lineno': 75})" against 
>>>>>>> balance (20 VGHCX {200 USD, 2017-01-01})
>>>>>>>
>>>>>>> This leads me to asking a few questions:
>>>>>>> 1) The obvious; what am I doing wrong? I simply want to sell the 20 
>>>>>>> shares of VGHCX at $205/share that I own and return the funds as USD to 
>>>>>>> my 
>>>>>>> main account (cash).
>>>>>>> 2) If I remove the sale, only my principal shows on my ledger, my 
>>>>>>> investment's growth is not shown as a part of my net worth; is this 
>>>>>>> correct, or is there a deeper rooted issue?
>>>>>>> 3) Should reporting price in my ledger impact my net worth and if 
>>>>>>> not, where in bean-web or fava should I be able to refer to my growth 
>>>>>>> for 
>>>>>>> further analysis?
>>>>>>>
>>>>>>> Thank you in advance for your help!
>>>>>>>
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>>>>>>> .
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>>>>>>>
>>>>>>
>>>>>>
>>>>>>
>>>>>> -- 
>>>>>> Yuchen Ying
>>>>>> https://about.me/yegle
>>>>>>
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>>>>>>  
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>>>>>> .
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>>>>>>
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>>>>  
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>>>>
>>>
>>>
>>>
>>> -- 
>>> Yuchen Ying
>>> https://about.me/yegle
>>>
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>

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