Home → Investments →

Investment Register Split Transactions

• Edit

alanbob

24 Sep, 2017 08:43 AM

I searched the discussions but couldn't find a solution to my problem.

I have a Fidelity 401k account that both I and my employer contribute to. There is no cash balance in this account, all contributions purchase shares of the security. I download transactions directly into MD. Each purchase transaction is recorded as the total of my contribution (a transfer from my paycheck) plus my employer's matching contribution, So, every two weeks, two separate transactions appear in the investment register: 1) the amount contributed from my paycheck (X dollars) which is recorded as a negative amount, and 2) the share purchase transaction (2X dollars in value, the total of my and my employer's contributions).

The running total of shares is correct, and the total share value is correct, but I also have a negative cash balance equal to the total of the contributions withheld from my paycheck. I can periodically enter an adjustment in the Register to bring the cash balance back to zero, but there's probably a better way to do this.

I know that the Register doesn't support splits, but supposedly the Bank Register does. I can't make it work, though. I'm on version 2017.3. Any suggestions? Am I missing something?

Thanks!

1. 1 Posted by -Kevin N. on 24 Sep, 2017 02:31 PM

   

   Hi alanbob,

   Take a look at this Moneydance KB article related to entering a paycheck as a split txn. It's a little dated but the essentials are there.

   What you'll want to do is enter one of the splits as a transfer to your 401(k) account.

   http://help.infinitekind.com/kb/archive-entering-transactions/archi...

   -Kevin N.
   (not a member of MD support)

   • Edit

2. 2 Posted by alanbob on 24 Sep, 2017 07:36 PM

   

   Hi Kevin,

   Thanks for the rapid response, but I’m already doing what you suggested (my direct deposited paycheck includes about 16 splits, only one of which is the 401k contribution). I’ve provided a screenshot to illustrate the problem.

   The entry on 4/26/13 is the split from my paycheck on that date. It’s categorized as a transfer (employee contribution) into my Fidelity 401k account.

   The entry on 4/30/13 is the downloaded transaction from the Fidelity web site. The transaction consists of the total of my aforementioned transfer (contribution) on the 26th PLUS my employer’s matching contribution: 50.82 + 50.82 = 101.64. The problem is that the Fidelity transaction doesn’t come into MD with a split showing employee and employer contributions on separate lines, but rather as a single transaction for the total amount. If it included the split I could merge my paycheck contribution into the transaction with no trouble. I could also do that if I could create a split in the investment register. The cash balance should always be zero because all funds are used to purchase shares.

   So, in order to make the values all come out right I can make an adjusting entry in the investment register in this case 50.82), but it doesn’t accurately reflect reality. I suppose I could create the (split) transactions manually and not download from the Fidelity web site, but that’s a step backward I’d rather not take if not necessary.

   Thanks again for the help.

   Sent from Mail for Windows 10

   • CA3763E6456B44368A9D13D7983CF2B5.png 98.9 KB
   • Edit

3. 3 Posted by -Kevin N. on 24 Sep, 2017 09:03 PM

   

   Hi alanbob,

   Since your contribution is properly accounted for in the 401(k) account, I think the simplest option so as to account for your employers match, would be to enter an 'Xfr' transaction into the 401(k) account using the 'Salary:Employee Matching' category.

   You could set it up along side of your Paycheck Reminder so that they're entered in tandem.

   There's a thread here discussing it along with the suggestion from Moneydance support staffer Tom Freeman.
   http://help.infinitekind.com/discussions/general-questions/21730-em...

   -Kevin N.
   (not a member of MD support)

   • Edit

4. 4 Posted by dwg on 24 Sep, 2017 09:08 PM

   

   So it looks like what is happening is that your employers contribution is not being done via the payroll system but is being handled separately. So it is not reflected in your paycheck

   Thus you need to have a transaction that accounts for this. There are a number of ways of doing this. One would be to create a category for Employer contributions and perform a transfer between this and your investment account for this amount, it is not an adjustment but reflects the actual transaction. Another approach is to set up another split transaction for the employer contribution but the total amount going to the Investment account, you cannot set up this split transaction in the investment account you would have to do it in your bank account or a cash account.

   • Edit

5. System closed this discussion on 24 Dec, 2017 09:10 PM.