Hi xboxboy.mageia, In my experience, Australian companies usually retain the difference between the total dividend and the value of the integer no of shares reinvested for you. I track this value for each share in an asset account called Assets:Investments:Residual:[Share Code] The opening and closing residual value usually shows on each dividend. I think some companies allow you to specify to donate this residual to charity. If that is not your preference, most companies return the residual value to your dividend bank account when you change to having 0% of your dividend reinvested.
Regards, Chris Good > > Message: 1 > Date: Thu, 8 Jun 2023 01:30:36 +0930 > From: "xboxboy.mageia+GnuCash" <xboxboy.mageia+gnuc...@gmail.com> > To: "gnucash-user@gnucash.org" <gnucash-user@gnucash.org> > Subject: Re: [GNC] Rounded Up/Down Share Purchase with Dividend > Message-ID: <79a99dd0-0f90-c283-60e3-9f9c937aa...@gmail.com> > Content-Type: text/plain; charset=UTF-8; format=flowed > > Hi Jim, > > that's just it, the $2 does 'vanish'. I don't see it, it's not passed to > me at that time, or any time in the future: > > As for a line to account for that, I guess that's what I'm asking: How > do I create an account to absorb that $2, that then disappears into the > ether? > > I hope that is clearer? > >> On 8/6/23 01:21, Jim DeLaHunt wrote: >> Hello, xboxboy.magela: >> >> You ask how to account for the $2 that has "vanished". This jumps out >> at me as the core of the problem: >> >>> Dividend (franked): Dividend reinvestment account $10 >>> Buy: stock purchase: 1 unit $8, total buy $8 >> If your dividend after franking is $10, and you buy stock for $8, then >> there should be $2 cash left over. You do not show that left over cash >> in your transaction. Where does that money go in real life?? Add a >> line for that in your transaction, and it should balance. >> >> Does this answer your question? >> >> Best regards, >> ??? ?Jim DeLaHunt, Vancouver, Canada >> >>> On 2023-06-07 08:01, xboxboy.mageia+GnuCash wrote: >>> Hi guys, >>> >>> My issue is this: I'll provide an example: Note, I'm in Australia, so >>> we have franked (taxed) dividends that we claim a tax break on. >>> >>> Total dividend $12; made up of >>> >>> Franked dividend $10 >>> >>> Imput credit (tax credit) $2 >>> >>> (So in this example $2 is paid to the tax office by the company, and >>> I receive only $10) >>> >>> But I reinvest this dividend: Say the shares are $8. >>> >>> That means with my $10, I can get 1.25 shares, but it gets rounded >>> down/up to the nearest share. >>> >>> So I get one share for a cost of $8. >>> >>> So normally I'd enter it like this: >>> >>> Expense: tax credit $2 >>> >>> Dividend (franked): Dividend reinvestment account $10 >>> >>> Buy: stock purchase: 1 unit $8, total buy $8 >>> >>> Total dividend income $12 >>> >>> Cost of share(s) $8 (normally from that dividend reinvestment account) >>> >>> (but now I'm $2 unbalanced) >>> >>> How do I account for the $2 that has now 'vanished'. With my other >>> companies, this amount gets put into an account, and I get to apply >>> it to the next dividend. But with this company, they don't do that, >>> the amount is simply 'gone'. >>> >>> Hope that makes sense, any ideas most appreciated, >>> >>> >>> _______________________________________________ >>> gnucash-user mailing list >>> gnucash-user@gnucash.org >>> To update your subscription preferences or to unsubscribe: >>> https://lists.gnucash.org/mailman/listinfo/gnucash-user >>> ----- >>> Please remember to CC this list on all your replies. >>> You can do this by using Reply-To-List or Reply-All. >>> >> _______________________________________________ >> gnucash-user mailing list >> gnucash-user@gnucash.org >> To update your subscription preferences or to unsubscribe: >> https://lists.gnucash.org/mailman/listinfo/gnucash-user >> ----- >> Please remember to CC this list on all your replies. >> You can do this by using Reply-To-List or Reply-All. _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
