Vanguard DivReinvest is decreasing my cash balance

Steven B's Avatar

Steven B

16 Oct, 2021 08:27 PM

I am moving to MD from Quicken and just downloaded my Vanguard brokerage account. I have several funds where dividends are reinvested. Vanguard seems to download the transactions correctly but for each DivReinvest transaction, my cash balance is decreasing by the dollar amount of the transaction when it should be staying the same.

In my Vanguard account, i see each of these as two transactions--one where the dividend is paid and then a second transaction reinvesting the dividend amount into the same fund.

What am I missing here? How can i get MD to show no cash change for DivReinvest transactions:

  1. 1 Posted by Steven B on 16 Oct, 2021 08:40 PM

    Steven B's Avatar

    I've noticed that in the Security column of the register, there is no category selected for any of the DivReinvest transactions. If I assign a category, say "miscellaneous", then the cash balance does not change and is correct.

    But what is the correct category to assign for DivReinvest transactions?

    Thanks!

  2. 2 Posted by dwg on 16 Oct, 2021 08:49 PM

    dwg's Avatar

    I'm a fellow user.

    To understand why something may be happening in Moneydance we firstly need to know what the transaction(s) look like in the OFX download. This is the only data Moneydance has to work with.

    To answer your second question. A Dividend reinvestment transaction is just a dividend that has been used to buy more shares hence as far as categories is concerned it is still Dividend transaction, if this is a fund then you may well need to create a category for Fund reinvestments. The differentiate is due to the different tax implications in many instances.

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