Adjusting an Investment Balance

Martin Moneydance's Avatar

Martin Moneydance

20 Jan, 2020 02:43 PM

I have some personal pension plans. Because I am no longer contributing to these plans, on each statement that I receive, there is an adjustment to the number of units (on some plans an addition, on others a deduction) that reflects additional units added or subtracted without any associated cash movements. The statement also gives me an updated value per unit.

When I try and reflect this in the corresponding investment account, the end balance that it shows on the statement is based on what it thinks is the "cost" of the position rather than the valuation of the position. Let's take an example to illustrate:

Balance as at 30 September 2019: 329.5638 units @ £34.195 (£11,269.43)
Balance as at 31 December 2019 : 330.1169 units @ £33.933 (£11,201.86)

If I add a transaction of BuyXFR 0.553 units @ the new price of £33.933 per unit, instead of showing a new balance of £11,201.86, it shows a balance of £11,288.32 which I believe is made up of £11,269.43 + (0.553 x £33.933).

What do I need to do to get to the correct balance of £11,201.86? I should add that the new price at 31 December is shown for the security in the history for the security.

Thank you.

  1. 1 Posted by tgilbert666 on 21 Jan, 2020 03:24 AM

    tgilbert666's Avatar

    From a fellow user.
    Hi Martin,
    I don't have any answers, but I do have some questions that might help you to discover what is going on.
    I don't understand why you've done a BuyXFR at a unit price of £33.933 when you say "without any associated cash movement". Shouldn't that be a Buy or BuyXFR of 0.553 units at zero £ amount then?

    Otherwise - I believe - you'll wrongly increase your cost-base.for the holding by about £16.

    What unit quantity is Moneydance showing before and after the transaction? Based on the numbers above, it would seem MD thinks that you now own some 332.1083 units?? (That's £11,288.32 / £33.933) Am I misreading your post? If you are on a very recent version, then I'd be surprised if MoneyDance has added those ~2 units without a transaction associated. Check your unit history in the Investment Transactions Report for that acccount and see if you can find which transaction didn't match your unit quantity expectations.

    Yes, the December unit price will have been added to the security history by the BuyXFR transaction and will remain if you delete that transaction.

    My suggestion for investigation - were I in your shoes - would be to make a full backup, and in a test copy of your data file, delete the December BuyXR, CHECK THAT THE UNIT BALANCE MATCHES the Sept balance and then reprocess the Dec trans as 0.553 units at £0. Or course, I may have completely missed the mark! :-)

  2. 2 Posted by Martin Weigold on 21 Jan, 2020 01:57 PM

    Martin Weigold's Avatar

    Thank you – this did the trick plus updating the current price to the latest price that I had. For some reason, the current price does not pick up the latest price that you include in the history section for the security.

     

    Regards

     

    Martin

     

    From: tgilbert666 <[email blocked]>
    Reply-To: <[email blocked]>

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