Investments:Reinvest Dividend is an expense, why?

markaevans's Avatar

markaevans

27 Jan, 2024 08:06 PM

While looking at income and expense reports I see that "Reinvest Dividend" transactions show up as negative expenses rather than income. This seems backwards (should be income).

Any reason why?

  1. 1 Posted by Stuart Beesley ... on 27 Jan, 2024 08:36 PM

    Stuart Beesley (Mr Toolbox)'s Avatar

    Well. What category is the dividend posted against? And what type is that category. The choice is yours what to select for the txn…

  2. 2 Posted by markaevans on 27 Jan, 2024 08:46 PM

    markaevans's Avatar

    Thanks for the response. Here are more details.

    I have an investment account. The investment paid out a dividend as reinvested stock. I categorized the transaction action as "DivReinvest" and used a category of "Investments:Reinvest Dividend". That category is an "Expense". i assume that "Reinvest Dividend" is the right category for this type of transaction. But why would that category (a reinvested dividend -- given to share holder) be considered an Expense?

    This is a category included with MoneyDance. I figured whoever created it and included it with MD would have a good reason for categorizing it as an Expense. But that messes up my income/expense reports. It reduces my expenses (in reports) yet in my mind, I think it should increase income.

    Thoughts?

  3. 3 Posted by Stuart Beesley ... on 27 Jan, 2024 08:55 PM

    Stuart Beesley (Mr Toolbox)'s Avatar

    Just create a new income category called dividend income and reassign the txn to use that category. Simple.

  4. 4 Posted by markaevans on 27 Jan, 2024 09:21 PM

    markaevans's Avatar

    I'd still like to know the thought behind why its type is "Expense" and if anyone uses it as such.

  5. 5 Posted by dwg on 27 Jan, 2024 09:39 PM

    dwg's Avatar

    Moneydance does not come with a category "Investments:Reinvest Dividend" in Expenses, nor in Income for that matter. So I would think the reason you have such a category is a result of importing QIF data from another program.

    The default is to have a category Investment:Dividend and to use that no matter what the dividend funds are used for. The action type of DivReinv is used to reinvest dividend income in new shares.

  6. 6 Posted by markaevans on 28 Jan, 2024 08:54 PM

    markaevans's Avatar

    "dwg" hit the nail on the head. Apparently "Investments:Reinvest Dividend" came along with my import. I will definitely fix the category. Thank you dwg and Stuart!

  7. Maddy closed this discussion on 08 Feb, 2024 01:10 PM.

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