Adding to an investment
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Adding to an investment
We are adding to an existing investment from our checking account. I have an Asset account and a Fund Balance account set up, with sub accounts for unrealized gains and losses. We only use one Fund. I’m struggling with how to account for the check we wrote to the Mutual Fund company. I can’t figure out what account to debit and get the existing Asset and Fund Balance accounts to come out correctly. This is not income nor expense but needs to show up on thee balance sheet. Thanks.
Re: Adding to an investment
OK ... backup the accounting database before you do anything else so you can revert if necessary.cbrown wrote: ↑Thu Mar 31, 2022 8:08 amWe are adding to an existing investment from our checking account. I have an Asset account and a Fund Balance account set up, with sub accounts for unrealized gains and losses. We only use one Fund. I’m struggling with how to account for the check we wrote to the Mutual Fund company. I can’t figure out what account to debit and get the existing Asset and Fund Balance accounts to come out correctly. This is not income nor expense but needs to show up on thee balance sheet. Thanks.
The check you wrote to the investment company came out of Operations checking, right? You used Accounts Payable, right? If so, you're going to need to enter a transaction in Funds Accounting that DEBITS the new Asset Account and CREDITS the Fund Balance account. Make sure you account for any fees that the company may charge for the initial setup as expenses, and NOT as part of this investment.
I'm fairly sure the system will include these new assets and fund balance accounts as part of the Balance Sheet, so run the Balance Sheet report and INCLUDE unposted transactions to verify.
IF you didn't use Accounts Payable to write the check how did you do that?
Neil Zampella
Using PC+ since 1999.
Using PC+ since 1999.
Re: Adding to an investment
Used a manual check and entered the transactions. All is well and everything balances. Thank you.