Hi Richard. Now I finally got time to read through your reply and understand/learn. Here is my feedback/reply. Thanks again!
*USD Dividends* You're right, it was not at the right place. I moved it under "Income". When I get paid dividends, how should I register this transaction? Do I increase both the "Income:USD Dividends" and the "Assets:IBKR:USD Cash" accounts? As the dividends on IBKR are automatically reinvested, I would then add another transaction, representing the purchase of VT stocks. *Wire transactions* Yes, I do have more than one wire transfer from my Swiss checking account to IBKR. I've added these transactions as "Assets:Swiss Checking Account" --> "Assets:IBKR:CHF Cash". *Forex CHF.USD* When I sell CHF to buy USD (to be able to buy VT stocks in USD), I have to pay a transaction fee. As an example, I exchanged CHF 9,998.- and got USD 11,214.26 for which I paid CHF 1.78 in commissions. This I entered as follows into GnuCash: "Assets:IBKR:CHF Cash" --> "Assets:IBKR:USD Cash" and I verified the exchange rate (which should match the "T. Price" in IBKR). In the above example this was correct (what I see in IBKR's statement is exactly the exchange rate GNC has calculated). I then added a second transaction to register the Forex fee: "Assets:IBKR:CHF Cash" --> "Expenses:IBKR:Forex fees in CHF". Does this sound right? And is there any way to have the fees included into the Forex transaction (like with splits)? I tried this route, but I was being asked about the exchange rate - which in my eyes shouldn't apply, as both the "CHF Cash" account on IBKR and the expenses account "Forex fees in CHF" are in CHF. *Fees in general* I agree with you keeping the fees separate from the transactions they've been generated from. Can you help me with the above questions? Thanks, F. https://www.instagram.com/boniforti_music https://soundcloud.com/boniforti_music https://bonny-j.bandcamp.com Am Di., 5. Nov. 2024 um 01:57 Uhr schrieb R Losey <[email protected]>: > Hello. > > I don't think that the "USD Dividends" would be under IBKR - that should > be somewhere else, probably under "Income" somewhere. When you are paid a > dividend, it either goes into the "Cash" fund, or else it is reinvested and > more stock is purchased. If the dividends are invested, you'd have a > "purchase" of that stock. For example, if you received $100 in dividends > and it purchased 5 shares of VT stock (using simple numbers to keep it > easy), you have a transaction in IBKR-VT that purchased 5 shares for $100 > and the "other" account would be an income account -- for me, it goes in > "Income:Investment Income:Taxable:Dividends". > > Other comments -- see below, but I do want to note (as others have) that I > am not an accountant. > > > On Sun, Nov 3, 2024 at 4:25 AM Boniforti Flavio <[email protected]> > wrote: > >> Hi Richard. >> I think I was already going that route --> >> [image: image.png] >> >> As of now, I have just put all the CHF Cash in that account. >> As I've added CHF in 5-6 different transactions and in between those I >> have also converted to USD and bought VT stocks, would I need to zero the >> "CHF Cash" account, then add each CHF wire transfer transaction >> individually? >> > > If each wire transaction is separate, there is the chance that the > exchange rate would be different, so I would enter them as different > transactions. > > But unless you take all of the funds from the CHF Cash account, it doesn't > need to be zeroed. Assuming that there is $1000 in CHF Cash and $1000 in > USD Cash, you could remove any or all of the CHF Cash, and then add the > appropriate USD amount to the USD Cash account. > > Next, you would have a transaction for the purchase of VT stock, with the > funds comes from the USD Cash account. > > > >> And then for each currency conversion I did, create the according >> transaction between "CHF Cash" and "USD Cash" accounts, after which I would >> add the VT purchase transactions - right? >> > > That sounds right to me. > > > >> If I do it like that, I could "hide" the ForEx trading fees by simply >> adjusting the conversion rate (like if I had converted CHF 1'000.- and I >> got USD 1'140.- and paid 1 USD fees, I could just "ignore" the fee and >> adjust the conversion rate so that it gives CHF 1000 --> USD 1140). Would >> that work? >> > > It may "work" but it would probably be more accurate to have a split > transaction with that shows the CHF 1'000 decreasing by 1'000 and then the > USD account going up by 1'141 with a USD 1 decrease assigned to the account > where you track the exchange fees. That way the CHF-to-USD rate would be > correct, and you could see what you are paying for exchange rates. > > > > | Would this process also work when buying VT stocks? In that case, I buy > a fixed amount of VT stocks at the VT price, and I could > | "hide" the fees by adjusting the stock unit price?! > > Again, I suppose you **could** do that, but I usually put the fees in > separately. If I spend $1000 purchasing a stock that is worth $998, the > other $2 is assigned to my account for Investment Fees > ("Expenses:Investment:Fees") > > > >> What's not clear to me at this point is: if I will have 1000 VT stocks, >> where will the actual value be reflected/calculated? Is it depending on >> manual retrieving the VT quotes via Finance::Quote? >> > > Yes, if you are getting quotes via the stock quote your VT value will > reflect the last price update you retrieve. It will NOT change your > transaction. However, by "hiding" the fee as you propose, it will look > like you've lost money when you have not. See the following example: > > You spend $100 to purchase 10 shares of VT, but there is a fee of $5. The > reality is that you paid $95 for those 10 shares, or $9.50 a share... > however, by "hiding" the fee in the price, it looks as if you paid > $10/share. The next day, the price goes up to $9.75 -- you have actually > gained $2.50 ($0.25 gain on 10 shares); however, in GnuCash, it will look > like the price has "dropped" from $10 to $9.75 and that you have lost $0.25 > per share). > > > >> Thanks, >> F. >> > > I hope this is helpful... > > > >> >> Am Mo., 21. Okt. 2024 um 19:32 Uhr schrieb R Losey <[email protected]>: >> >>> Part of this is up to you, and GnuCash is flexible because >>> configurations can change. >>> >>> I assume IBKR is your broker, and you have a single, normal brokerage >>> account that deals in mutual funds and stocks. >>> >>> I would create a brokerage account and note that it is with IBKR; I >>> assume cash is help somewhere like a sweep account. I cannot tell if you >>> have both a USD sweep and a CHF sweep; if you do, I'd create a subaccount >>> for each. Then I'd create an entry in the Security for the VT mutual fund, >>> and create a subaccount in IBKR something like IBKR-VT that tracks the VT >>> shares you own. Each buy or sell of VT will be its own transaction, with >>> the funds coming from the USD sweep. Money you send to IBKR will, I >>> assume, go into the CHF sweep, and then either manually or automatically, >>> get converted to USD as you make purchases. >>> >>> Dividends are just another transaction; if you are reinvesting >>> dividends, you'll add the transaction, but the "other" account will be some >>> dividend income account - for me, I have an "Income:Investment >>> Income:Taxable:Dividends" account for these things. Dividends that are not >>> reinvested, will be entered in the sweep fund instead of purchasing more of >>> the mutual fund, but would still be assigned to the dividend account. >>> >>> >>> >>> On Sun, Oct 20, 2024 at 7:04 PM Boniforti Flavio <[email protected]> >>> wrote: >>> >>>> Hi all. >>>> >>>> I'd like to get some suggestions/guidance and eventually validate if my >>>> way >>>> of doing this is correct. >>>> >>>> I've put some money into IBKR (CHF) which I then converted into USD to >>>> buy >>>> VT. For the time being, I've just added the transactions in the "CHF >>>> Cash" >>>> account on IBKR, where I now see the actual money I put there. Now >>>> there's >>>> a few questions I can't answer on my own. >>>> >>>> As of today there is still some cash left on both CHF and USD accounts >>>> (peanuts, just to cover currency conversion fees), and the rest is >>>> invested >>>> in VT, how should I proceed to enter the various transactions, so that >>>> it >>>> finally reflects the actual status (some CHF Cash, come USD Cash and the >>>> rest in VT)? >>>> >>>> I bought VT like 4 or 5 times, of course at different stock prices. >>>> >>>> Should I create a sub-account called "VT" (type "mutual funds"), then >>>> add >>>> each purchase transaction by taking the money from my "USD Cash" >>>> account, >>>> until the balance corresponds to the actual one on IBKR? >>>> Of course, in advance I would need to add the CHF-to-USD currency >>>> conversion for each time I bought VT shares. Here I don't know if I >>>> should >>>> add a sub-account related to conversion fees or not. >>>> >>>> Last but not least: when I will have set things right (which means >>>> having >>>> the CHF and USD cash accounts showing the actual/real amount and also >>>> the >>>> VT number of shares), will it be enough to update the VT share price >>>> manually to see how much I do have on IBKR? >>>> >>>> And how do I deal with dividends? Should I add another sub-account for >>>> the >>>> dividends? I automatically reinvest dividends in VT - how to deal with >>>> this? >>>> >>>> I know it's a bunch of questions, but maybe some kind soul will be able >>>> to >>>> help me walking through this :-) >>>> >>>> Thanks, >>>> F. >>>> >>>> >>>> https://www.instagram.com/boniforti_music >>>> https://soundcloud.com/boniforti_music >>>> https://bonny-j.bandcamp.com >>>> _______________________________________________ >>>> gnucash-user mailing list >>>> [email protected] >>>> 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. >>>> >>> >>> >>> -- >>> _________________________________ >>> Richard Losey >>> [email protected] >>> Micah 6:8 >>> >> > > -- > _________________________________ > Richard Losey > [email protected] > Micah 6:8 >
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