I set up a separate Business Entity in Manager for every Stock Account that I have. My reasoning is I am interested in the separate profit and loss from each account. The accounts can be with the same or separate brokerage.
I do stock and standard option transactions. The important question is: Did I profit or lose on a position.
A position could be a stock only position, a call only position, or a buy-write (buy the stock, sell the call). There are also put options.
Over time there will be hundreds of stock inventory items; there will be thousands of option inventory items. Aside from other reason, the biggest reason for so many more option inventory items is that options expire. Say the stock is Caterpillar having stock symbol CAT. Two of the many options for CAT might be
CAT 11/16/2018 130.00 call
CAT 02/15/2019 130.00 call
The only difference between these two calls is the expiration date. The calls can only be an active inventory item until they expire. These inventory items cannot be reused next month or next year or ever. Therefore over time, there will be thousands of option inventory items.
On the other hand, if I buy CAT (the stock) and later sell it, I can reuse CAT inventory item if I buy CAT next month, next year, or whenever.
On a given day, I might buy 5 to 10 stocks and sell 5 to 10 stocks. That’s 10 to 20 entries for the day. Since there is an option buy or sell for each stock transaction, there are double the transactions. That’s 20 to 40 entries for the day. In the worst case, I have never bought or sold any of the stocks or options until today. That’s up to 40 new inventory items. So, I make use of Manager’s bulk inventory batch create.
The point I am trying to make is that there are a lot of transactions to enter. Batching is important to me.
Import Bank Statement could potentially help me to batch enter transactions. However, Import Bank Statement does not work for me because I cannot specify inventory items and quantities. I hope that Manager has some batch capability for me and that the only problem is that I am looking in the wrong place (i.e. bank statement imports is not where Manager gives me the ability to batch enter transactions that involve inventory.
- I hope you can help me with batch transaction entries involving inventory.
I am thinking that maybe Purchases and Sales of stocks and options can be better expressed as Openings and Closings of positions, which I will explain further. First, here is what I think to set up
I changed the names as shown. When I do a buy write, I am purchasing the Stock and selling the Call. What I was doing before is entering the Stock purchase as a purchase and entering the Call sale as a sale.
The new way about which I am thinking is to record both the Stock purchase and Call sale as an Opening. You can see from my renaming the accounts that internally to Manager I am recording both as a purchase.
I enter the opening using all positive numbers for the Stock and a negative inventory amount for the Call.
A small thing is that the option price is given per share of stock. However, one option is 100 shares. So if I buy or sell an option, the price of one option is 100 times the quoted price of the option. When I record in Manager, I need to either record 100 times the number of options or 100 times the price of the option.
- I am interested if you like 100 times the quantity or 100 times the price.
I tried a test transaction. I am surprised that I get “suspense”. I’ll show you. Here is the transaction:
Go to Find and Recode:
I see “suspense” in the transaction.
I click Edit to show you the transaction:
- My question is, what am I doing wrong that I have suspense in my transactions?
Or is suspense in Find and Recode something I should ignore?
Going back to entering Opening and Closing positions: If I enter opening and closing positions instead of purchases and sales of stocks and options, here is how I hope to benefit:
If I am only opening positions for the day, I enter only one Opening Position transaction (a payment in Manager). I can record negative payments (purchases) instead of receipts (sales) for selling options. The result from entering one opening transaction is I have positive and negative inventory counts.
When I close an entire position (entered as a receipt / sale), the result is inventory counts zeroed for those positions closed. So close (sale in Manager) always means reduction (towards zero) of inventory counts.
So, this is the big change: Using Manager’s Payment transaction to mean I am opening or increasing positions; and using Manager’s Receipt transaction to mean I am reducing or closing positions.
So far looks to me that Manager handles negative quantities and negative prices seamlessly.
- I am very, very interested what you think. Am I heading for trouble? Or do you have some other ideas how to have Manager reports tell me overall on each securities account how much I am profiting or losing? And on a position how much did I profit or lose?