Simple enough in my case. Thanks.
Lisa R
On 9/1/2021 3:54 PM, David Carlson wrote:
If the price in the price database is wrong for a particular day it
can be manually corrected in the price database tool If there are not
too many errors to deal with. I run into that when manually entering
transactions
On Wed, Sep 1, 2021 at 4:50 PM Lisa Rowell <[email protected]
<mailto:[email protected]>> wrote:
On 9/1/2021 12:28 PM, John Ralls wrote:
>
>> On Sep 1, 2021, at 12:16 PM, John Ralls <[email protected]
<mailto:[email protected]>> wrote:
>>
>>
>>
>>> On Sep 1, 2021, at 11:15 AM, Lisa Rowell
<[email protected] <mailto:[email protected]>> wrote:
>>>
>>>
>>> On 9/1/2021 5:27 AM, Lisa Rowell wrote:
>>>> On 8/31/2021 9:41 PM, John Ralls wrote:
>>>>>> On Aug 31, 2021, at 8:32 PM, Lisa Rowell
<[email protected] <mailto:[email protected]>> wrote:
>>>>>>
>>>>>> I'm working my way through my account history after a
massive GnuCash import, straightening out issues with missing
realized capital gains/losses and came across an event that I
can't figure out how to properly handle.
>>>>>>
>>>>>> I held shares of a fund called Spartan 500 Index Investor
Class (FSMKX) which merged with Spartan US Equity Index Investor
Class (FUSEX) at some odd rate around 1:0.513. When I did the
import, I ended up with an account for FSMKX and an account for
FUSEX and a manually entered exchange transaction which did a sell
of FSMKX shares and a buy of FUSEX shares with no share price.
This got everything balanced out as far as share counts go, but
now I'm finding it's showing up as being not correct in the Trial
Balance. It looks to me like the exchange is being interpreted as
if an actual sell event had taken place.
>>>>>>
>>>>>> Can GnuCash properly account for this? The case in the
manual's More Complex Merger example is a bit different because
the example stock continued to trade under the same symbol, so
that solution doesn't map well. I found a past mailing list thread
that said that the proper way to account for this is as a sell
transaction of the going away fund and a buy transaction of the
fund that lives on with an accompanying Realized Gain transaction.
This doesn't seem right to me though since I didn't sell the
shares and did not realize a gain and I don't even have prices for
the time of the merger. In my way of looking at it, the gain
calculation should come at the time of sale and be based on
purchase price of the various share amounts, and not at the time
of the merger, since that maps to the tax view of things where I live.
>>>>>>
>>>>>> I understand that GnuCash wouldn't be able to calculate the
realized gains post merger, and I'm ok with doing that in a side
spreadsheet, but am more looking for a way around the bogus
realized gain entry at the time of merger just to make the Trial
Balance happy.
>>>>> If you're not too compulsive and since this is presumably
ancient history in a personal book one simple way to deal with it
would be to pretend that you bought the FUSEX in the first place
and ignore the FSMKX, but that might be a little painful if you
have a bunch of reinvested FSMKX dividend transactions that you'd
also need to change.
>>>>>
>>>>> I've handled similar situations in the past by doing a
simple transfer transaction between the two accounts, as in CR
FSMKX 513 and DR FUSEX 1000. As long as there's no currency
component to the transaction it shouldn't create a trading
imbalance in the book currency.
>>>>>
>>>>> Regards,
>>>>> John Ralls
>>>> That solution was what worked for me for share transfers
between brokerages, where the commodity was the same, but when I
changed commodities it somehow shows up as a mismatch in the Trial
Balance. I don't have a share price for the shares in either split
so, in theory it shouldn't involve the book currency at all. I
don't get it at all.
>>>>
>>>> I'm sure it's this transaction since the balances match on
the previous day and the only other transaction on this date is a
paycheck deposit in the book currency that's no where near the
amount of the imbalance. The transaction is in the image attached,
that's what you're advocating, right?
>>>>
>>>> Thanks.
>>>>
>>>> Lisa R.
>>>>
>>> Additional information:
>>>
>>> Removing the cross commodity sell/buy transaction does remove
the Trial Balance discrepancy. Additionally I added up all of the
purchase prices of shares of the fund being merged away and that
amount does equal to the credit / debit difference in the report.
>>>
>> It is, but that doesn't quite work. Here's a sample that does:
>> If you don't price the share transfer to the currency (USD in
both examples) the trial balance logic assumes 0 and calculates a
loss. To avoid that enter the book value of the shares you're
transferring as a sell (credit) amount in the source split and a
buy (debit) amount in the destination split:
>>
> Unfortunately my screen shot didn't make it to the list. It
contained the following transactions:
>
> 1/23/19 Buy PIODX 1000 Brokerage Account 1000
25.0000 25,000.00 1,000
> 2/28/19 Reinv PIODX 11.231 Brokerage Account 11.231
22.2598 250.00 1,011.231
> 9/1/21 Transfer to PXXXX -1011.231
1,011.231 0
> PXXXX 1971.211 12.8094
25,250.00
> PIODX -1011.231 24.9698
25,250.00
>
> The last transaction is in split view showing the identical cash
amounts for the two stock accounts. Enter the amounts and let
GnuCash compute the prices to prevent rounding errors from causing
a gain/loss.
>
> Regards,
> John Ralls
I got the image in email, and it cleared things up for me. It
looks to
me like you put in the sell book currency amount as not the value
on the
date of the merger, but rather the basis for the shares being
converted,
thus making the it look like there is no gain/loss being realized. I
suspect this simplifies dealing with gains/loss calculation on the
post
merger shares as well.
The one issue I see with this as a solution is that it creates
incorrect
prices in the price database, which I assume would mess up a Network
Report. I'm not sure this bothers me in this case.
Thanks for getting me back on track, it's greatly appreciated.
Lisa R.
>
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