How to stop cash balances on employer's 401k contributions.

buka's Avatar


29 Apr, 2017 04:50 PM

Every month my employer makes contributions to my 401k type account. It buys securities. BUY transactions will take from the Cash balance which always should be 0. How do you enter "buy" transcations without affecting the cash balance?

  1. 1 Posted by dwg on 29 Apr, 2017 09:53 PM

    dwg's Avatar

    Moneydance follows the principles of Double Entry Accounting so the funds to buy a security have to come from somewhere.

    As you have noted a Buy transaction takes the funds from the Cash Balance. You can instead use the BuyXfr action which will takes the funds from another account or a category, In this case you could create a new category called something like Employers 401K Contributions and use this as the source of the funds.

  2. 2 Posted by buka on 30 Apr, 2017 02:51 AM

    buka's Avatar

    Thanks much, that fixes a lot of other things that weren't quite right in my migration from Quicken. I decided to start fresh and not have the entire history of my transactions in all the various accounts and just start out with the current cash balances and holdings.

    But does this solution "swallow" the employer's contributions when MD calculates the net worth?

  3. 3 Posted by dwg on 30 Apr, 2017 03:43 AM

    dwg's Avatar

    Net worth looks at values in accounts, not categories hence you only take into account the current value of the securities the contributions have purchased. To see employer contributions, if desired, you would use an Income and Expense report which uses categories as their basis.

  4. System closed this discussion on 30 Jul, 2017 03:50 AM.

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