Balance Sheet does not reflect Correct Investment Balance after Partially Sold Investment

1

Hi All,

I am using the Investment Module to record Stock purchases. It’s been going well until I partially sold a stock. The Capital Gains on the P& L Statement looks fine. It’s the Balance Sheet that is not registering correctly. Both the Investment and the Retained Earnings are incorrect on the Balance Sheet - only since posting the sold stock using the Payment Module. The Balances are wrong on the actual BS Report, but if I click on the number and drill into the RE or Investment accounts the information is correct.

Please help.
Thank You,
Barbara

2

Can you show screenshot what you see when you drill-down into Investments account?

All balances are clickable and drilling-down should explain how the balance was calculated.

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3

Realised capital gain (the difference between actual purchase transaction and the actual sale transaction for those share) and unrealised capital gain (theoretical gain/loss when share price changes but you did not sell those shares) are treated differently in all jurisdictions I’m aware of. You will need to check both.

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4

Thank you :slightly_smiling_face:

5

So unfortunately I sent this topic forum b4 checking my version of Manager. I was using 23.7…something. I’ve updated to 24.12.23.1996

Needless to say it looks different and has different options to explore for Investments. I need to make appropriate month end adjustments, delete manual JEs and see where it all lands.

I will update once I’ve done these items and let everyone know whether there is still a problem or not.

Thank you to everyone who has responded. Sorry for the fire drill.

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6

Hi Again, after making several changes in the updated version, this is what I’m struggling with. All of my stocks should be considered Available-for-Sale (AFS) Securities, not Held-For-Trading (HFT) Securities. Manager is treating all my stock investments as HFT’s and putting the month end price adjustments on the P&L in the Capital Gains/Loss account, rather than where they need to go - which is on the Balance Sheet (ie. Other Comprehensive Income/Loss (OCI)). The P&L account Capital Gains/Loss is a Control Account and I cant make any JEs to it. So I’ve had to create a contra account to the Capital Gain/Loss account to create a month end JE to offset and put into OCI.
I tried creating two control accounts for investments, AFS and HFT. But that didn’t do anything to change where the monthly stock value changes went.
It isn’t the end of the world to create a ME JE. But I thought I would bring it to the attention of the Forum in case anyone else has this same problem, has a solution, or can tell me what I’m possibly doing wrong. Thanks!

7

I agree the only practical way to use Manager’s current investment tab is not using the built in unrealised gain/loss facility as per Investment asset total as base cost - #8 by bradlyons and instead using

  • journal entries for unrealised gain/loss
  • Multi line entry for investment sales (to separately list quantity for each purchase lot being sold an resulting realised capital gain/loss)
  • External tracking of residual investment purchase lots.

Hopefully in the future managers unrealised investment capital gain/loss will support custom control accounts (equivalent to fixed assets) so it could be used and the above journal entries eliminated.

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