Paras, I used the lots feature for quite some time, and for a while I felt that it made my investments life so much easier.
But. The day came when I had to change one capital gain entry that was off for some reason*. I changed it to the proper amount (as reported to the tax authorities), and moved on. Time passed. Reconciliations happened. I kept using the lots in the account on new accounts. And then the account wouldn't reconcile. Hours later, I discovered that the lots feature had "readjusted" my already-reconciled transaction back to what it believed was the correct number, all without any notice to me whatsoever. I will admit that the underlying issue was that I needed to change **which** lots were affected by a given sale, and that selecting the wrong lots (easy to do in a mutual fund where dividends are reinvested every so often, creating many small lots) would throw off the capital gains amounts. So, that's my fault for not understanding the accounting principles and transactions needed for recording capital gains. But any feature that's going to change reconciled transactions silently behind my back is simply not OK. So I do my capital gains transactions manually now. I need to be able to trust that the figures won't magically change on me. David T. * the list discussion for all of this is at: https://lists.gnucash.org/pipermail/gnucash-user/2022-July/102059.html On Jan 9, 2024, 3:11 PM, at 3:11 PM, Paras Desai <desaipa...@outlook.com> wrote: >Hello Geoff, > > >Firstly, I must salute you for your very methodical and illustrative >explanation. It is really heartening to see the kind of special efforts > >you put to first create the accounts, posting illustrative transactions > >yourself, taking screenshots and arranging them beautifully, so that >one >can understand easily. My profound and heartfelt thanks to you. > > >I adopted your second approach, as I need to report the taxable STCG. >However, I took little different approach by splitting the transaction >manually following the examples in your screenshot, and every thing >fell >in place, closing balance of both the Mutual Funds, their current >valuation, STCG in Income head, realized gain in Advance Portfolio >report. I need little practice before I scrub my portfolio >automatically, as it has many entries, and I was bit hesitant, so I >did >it manually but will certainly learn the same. > > >Once again thanks a ton and wish you a very happy new years ahead > > >My best regards to you Geoff. > > >Paras > > > >*From: *Geoff [mailto:cleanoutmys...@gmail.com] >*Sent: *Tuesday, January 09, 2024 05:32 AM +5.5 >*To: *Paras Desai; GnuCash User List >*Subject: *[GNC] posting of Switching of Mutual Fund > >Hi Paras > >This is very easy to do in GnuCash, and it will even calculate the >prices and capital gains (or losses) for you. > >1. Use the Security Editor to create the Securities for both funds. >2. Create the Accounts for the funds and link them to the Securities. >3. Enter the Buy on Liquid - note how GNC calculates the Price. >4. Enter the Sell on Liquid, with Equity as the second account. > >See attached "gnc_paras01.jpg" and note: >A. Price Database is automatically updated >B. Gain does not appear on any of your Accounts >C. Balance Sheet shows your Capital Gain as "Unrealised" > >And that is all done and dusted... > >...unless you need to "realise" your capital gains(losses) as >Income(Expenses) as tax time. If so, please read on. > > >GnuCash has a sensational feature called Lots that is designed to track > >and realise your capital gains & losses, but it can be a bit daunting >for new users. > >1. Open the Account for Liquid Fund >2. Actions -> View Lots >3. In the Lots window, click on "Scrub Account" > >See attached "gnc_paras02.jpg" and note: >A. New Capital Gain/Loss transaction in Liquid Fund >B. Gain now shows in your Accounts*** >C. Balance Sheet shows your Gain as "Retained Earnings" > >*** By default, the GnuCash Lot Editor puts all Gains & Losses in an >account called "Orphaned Gains" - you need to edit the Gain transaction > >and assign it to the appropriate Account - in this example, "STCG". > > >Hope this helps. > >Regards > >Geoff >===== > > >On 9/01/2024 1:19 am, Paras Desai wrote: >> Hello Sirs, >> >> I have an investment in a liquid Mutual fund and I every week >> systematically transfer some amount to an Equity Fund (which is STP) >> >> While doing so, there is an effect of Capital gain or Loss and the >> money does not come to any account, but the fund gets transferred to >> another fund automatically >> >> The Transaction is like below >> >> A. Liquid Fund : SWITCH OUT (PRACTICALLY SALE) >> >> Units 773.14, Purchase Cost : 9696.630, Sales realization is : >> 10000, Short term Capital Gain is 303.370 >> >> B. Equity Fund: SWITCH IN (PURCHASE) >> >> Units : 75.684, Value: 10,000 >> >> Here, Money does not come to my bank or security account >> >> Normal Posting could be >> >> Cr Liquid Fund : 9696.630 >> >> Cr Short Term Capital Gain : 303.370 >> >> Dr Equity Fund, 10000 >> >> I am just wondering, how this transaction can be effected in GNUCASH. > >> I tried to search for wiki and some old communication on this subject > >> but could not get the clear idea. Hence, thought of seeking help >here. >> >> Will very much appreciate any help >> >> With my best regards >> >> >> Paras >> >> _______________________________________________ >> 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. 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