Cost basis calculations
Using MD2015.6 (1299)
Is there an issue with the cost basis calculations in this version? I have a feeling I have not traded shares since the last version and I thought the CB reports were correct. I am using average costing. I just created a test and bought 1 share for £10. The shares report shows it as cost £13. I then sold it and the Capital Gains report shows the CB as £9.65.
What can I do to test/debug further as it's critical the cost basis calculations are correct.
Thanks
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1 Posted by Stuart Beesley ... on 25 Oct, 2016 03:38 PM
An update... OK, it seems that the reports are ignoring the cost on the actual buy transactions, and rather it is averaging the cost basis of all the buy transactions, and ignoring the sell transactions.. This makes no sense. If I buy 1 at £100 and then sell 1 at £200 = zero shares remaining, when I buy more shares at £300, the cost basis should be £300, and not include the £100.
2 Posted by Stuart Beesley ... on 25 Oct, 2016 07:42 PM
Another update. Same issue on 2015.7 and also MD2017. What I can say is that the cost basis in the shares report is fine, so it seems to just be the capital gains report that is wrong....
3 Posted by derekkent23 on 26 Oct, 2016 07:13 AM
I am just a user, as you are. But I would suggest you join the 2017 discussion on http://slackin.infinitekind.com:8000/?_ga=1.238849604.592183958.147...
This is run by Sean Reilly the software engineer working on 2017. He read and comments on issued raised there and is excitant in providing fixes.
4 Posted by dwg on 26 Oct, 2016 07:57 AM
Stuart,
Forget about build 1299 it is not worthwhile to pursue anything in a version that old.
I believe what will be need as a starting point are images/reports that show the issue. An Investment transaction report or a screen dump of the register show the entries that have been made, A capital gains report showing the problem, cost basis report etc.
I have seen strange transactions throw off some reports, for example entering a sell transaction with a total but no number of shares or per share cost causes different results depending on what you are looking at so I think it will take working through the data and reports to try and see what is causing the problem.
5 Posted by Stuart Beesley ... on 26 Oct, 2016 01:12 PM
OK. As mentioned, I have also tried MD2017 - no difference. I have now upgraded to build 2015.8 (1370) - see test data below. I creates a brand new account, cost basis and entered a buy / sell (all) and then another buy/sell (all) and I can reproduce the problem. There is no issue with the first buy/sell. It's with the second sell transaction. See screen shots. These are all fake transactions to test. Basically you will see that if I buy 3000 shrs at £15 and then sell all the 3000 shares for £20 plus £250 fees, that the gain should be £14750, but the report shows £28464.29 gain.
I can see what the report is doing now. It's adding up all purchase costs (£28000+£45000) divided by total shares purchased (4000+3000), multiplying that by shares sold (3000), then adding on the latest share fees (£250) = £31535.71
6 Posted by Stuart Beesley ... on 26 Oct, 2016 02:36 PM
OK, this spreadsheet models what's going on.. As mentioned the normal investment report shows the right cost basis, so the calculation is correct in that program. It goes wrong in the capital gains report - see columns real gain and MD gain
7 Posted by Stuart Beesley ... on 29 Oct, 2016 11:42 AM
Hello, any news on this problem please?
8 Posted by Stuart Beesley ... on 08 Nov, 2016 05:47 PM
Hello, any news on this problem please?
System closed this discussion on 07 Feb, 2017 05:50 PM.
Stuart Beesley (Mr Toolbox) re-opened this discussion on 30 Mar, 2018 02:46 PM
9 Posted by Stuart Beesley ... on 30 Mar, 2018 02:46 PM
Hello, any news on this problem please?
System closed this discussion on 29 Jun, 2018 02:50 PM.